The Rising Influence of Rising Affluence

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S&P cuts India's outlook to negative; no need to panic, govt says

http://timesofindia.indiatimes.com/business/india-business/SP-cuts-Indias-outlook-to-negative-no-need-to-panic-govt-says/articleshow/12864947.cms

The author has posted comments on this articleSidhartha, TNN | Apr 25, 2012, 01.58PM ISTNEW DELHI: Ratings agency Standard & Poor's on Wednesday lowered the outlook on India's sovereign rating to negative from stable, raising fears of a possible downgrade if growth is hit due to the absence of fiscal and policy reforms.

For the moment, however, the agency retained the sovereign rating at BBB-, which is just about investment grade.

"The negative outlook signals at least a one-in-three likelihood of the downgrade of India's sovereign ratings within the next 24 months. A downgrade is likely if the country's economic growth prospects dim, its external position deteriorates, its political climate worsens, or fiscal reforms slow," S&P credit analyst Takahira Ogawa said in a statement.


This just makes me wonder if European austerity has become a headwind for the BRIC countries as well as the rest of the world?