​​​
  1. RBI Governor Raghuram Rajan’s departure has no impact on ratings: Fitch

RBI Governor Raghuram Rajan’s departure has no impact on ratings: Fitch

Fitch Ratings said India's sovereign ratings will not be affected solely by the unexpected departure of central bank governor Raghuram Rajan at the end of his term in September.

By: | Mumbai | Updated: June 20, 2016 12:13 PM
The statement comes after Rajan stunned government officials and colleagues on Saturday by announcing he would step down after just one three-year term ending on Sept. 4.(Reuters) The statement comes after Rajan stunned government officials and colleagues on Saturday by announcing he would step down after just one three-year term ending on Sept. 4.(Reuters)

Fitch Ratings said India’s sovereign ratings will not be affected solely by the unexpected departure of central bank governor Raghuram Rajan at the end of his term in September, adding the country’s policies would be the main driver.

Fitch also said the new Reserve Bank of India Governor would inherit a good opportunity to continue pursuing a policy of relatively low consumer price inflation and of strengthening banks’ balance sheets.

“From a rating perspective, policies are more important than personalities,” Fitch said in a statement on Monday.

Also Read:Not Raghuram Rajan’s exit, but markets more worried about Brexit, monsoon, GST: Rakesh Jhunjhunwala

“The problems associated with both high inflation and weak bank balance sheets have been recognized, and policy makers are doing something about it,” Fitch added.

“Such institutionalization implies support for these policies beyond the governor, also among government officials and broader within the RBI.

Fitch has a “BBB-minus” rating with a “stable” outlook for India.

The statement comes after Rajan stunned government officials and colleagues on Saturday by announcing he would step down after just one three-year term ending on Sept. 4.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Go to Top