Fitch warns India, Indonesia of downgrades if confidence falls further
LONDON Aug 22 (Reuters) - India and Indonesia could see their credit ratings lowered if their governments fail to halt the current slump in investor confidence towards the countries, Fitch ratings said on Thursday.
Fitch currently rates both India and Indonesia BBB- with a stable outlook but the recent sell-off in emerging markets, sparked by worries of a scaling back of cheap U.S. financial stimulus, has raised the pressure on the countries.
The firm said the developments were not "a trigger for rating action at this point," but said authorities in both countries would have to restore financial stability.
"Rapid private-sector credit growth, widening fiscal deficits or sustained higher inflation could lead to a broader and more sustained loss of confidence among investors."
"This could potentially undermine economic and financial stability, and ultimately lead to negative rating action," Fitch said.
- U.S.'s Kerry expresses regret to India over diplomat case |
- Mega Millions winners in Georgia, California to split $648 million |
- China confirms near miss with U.S. ship in South China Sea
- Washington, DC city council raises minimum wage to $11.50/hr in 2016
- Fed cuts bond buying in first step away from historic stimulus |