The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Sovereign downgrade fails to move markets

Yashwant Sinha

When international rating agencies announced a negative outlook on India's sovereign rating in early August, the equity and bond markets barely reacted.

That was not because they disagreed with the assessment but because the rating actions confirmed what the market already knew. Sunil Gulati, head of investment banking at ING Barings, says: "Second-generation reforms have simply not taken off."

An economist at a large US investment bank adds: "The market [index] is down from 6000 to 3300; that's a verdict on economic reforms." Ullal Bhat, chief investment officer, Jardine Fleming Asset Management, takes a slightly different view: "The outlook is negative, but given how bad things are in some east Asian countries today, there is a feeling that India is not doing so badly."

Standard &Poor's lowered its outlook on India's sovereign rating on domestic bonds to triple B minus from Triple B.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree