17 June, 2021

No Direct Link With Sanctions: Moody's

More important was the government and its budget and whether investors were being given the right signals, David Levey, managing director, Sovereign Risk Unit, Moody's Investor Service in New York told Narayan D. Keshavan. Excerpts:

No Direct Link With Sanctions: Moody's

Your ratings have triggered quite a furore in India. Do you realise that?

That's a recent development. I'm not sure we always want to create a furore. Part of the problem is that these ratings become extremely politicised and are taken, very often incorrectly, as some kind of a commentary or measurement of the government's policies. They are affected by government policy, but are not meant to be some kind of scorecard about countries or governments. But that happens very often because they're a convenient and easy-to-remember symbol of evaluation. Quite often, what moves the ratings isn't entirely under the control of governments or something they can easily change by policy. It has a lot to do with the world economy. Ratings are fundamentally for use by investors in the capital market. That's the main audience. They won't have much effect on direct investors like Enron.

Are you suggesting that FDI won't be affected?

FDI is not going to be influenced much by our ratings, because they obviously look at the...

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