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      Question

      Which is NOT correct about India’s sovereign rating

      by Fitch? (A) India’s rating is BBB+, which is the lowest investment grade rating (B) India’s long-term foreign and local-currency issuer default ratings were also fixed at ‘BBB-‘ (C) The rating is mainly due to the weak state of the government’s finances.
      A Only (A) Correct Answer Incorrect Answer
      B Only (A) & (B) Correct Answer Incorrect Answer
      C Only (A) & (C) Correct Answer Incorrect Answer
      D Only (B) & (C) Correct Answer Incorrect Answer
      E All (A), (B) & (C) Correct Answer Incorrect Answer

      Solution

      India’s rating is BBB-, which is the lowest investment grade rating Fitch has acknowledged India’s strong growth and recent economic reforms, but it has a given a BBB- rating owing to the weak state of the government’s finances. According to Fitch, India’s general government debt burden was 67.9% of GDP whereas the ‘BBB’ median is 40.9%. 

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