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The Reserve Bank of India (RBI) Governor held a meeting on Thursday with the chiefs of Credit Rating Agencies (CRAs) to get their assessment of the macroeconomic situation and outlook on the various sectors, including the financial sector.
The meeting came in the backdrop of domestic credit rating agencies (CRAs) such as CRISIL and ICRA expecting India’s GDP to contract 5 per cent in FY21 due to the impact of thepandemic.
Foreign CRAs such as Moody’s and Standard & Poor’s are expecting India’s GDP to contract 4 per cent and 5 per cent, respectively. However, all CRAs expect India’s GDP to bounce back in FY22.
Perspectives on the overall financial health of the entities rated by the CRAs were shared by their chiefs at the meeting, which was held through video conference and attended by Deputy Governors and other senior officers of the RBI.
The other issues that were discussed were the major factors that affect credit ratings in the current context, and ways to further strengthen the rating processes and engagement with key stakeholders.
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