The Hindu Business Line : Improved capital flows seen

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Chennai Jan. 30 The S&P rating upgrade is seen by some economists as a belated acknowledgement of the visible growth of the Indian economy. Markets have, however, tended to move ahead, going by the interest in Indian paper floated abroad.

So will the new rating make a difference? Yes. For one, overseas borrowing of Indian companies and banks is expected to become a wee bit cheaper (about 0.25 per cent on the average). For those with international ambitions, even that can make a difference in markets where interest margins are very thin. More importantly, a new pool of investors — who had hitherto kept away from exposure to India because it was below investment grade — would now be ready to come in.

More Stories on : Credit Rating | Overseas Borrowings | Economy

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