07-11-2008, 09:08 PM
<b>India Output Growth Slumps, S&P Says Rating May Be Cut to Junk </b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->July 11 (Bloomberg) -- <b>India's industrial production grew at the slowest pace in more than six years and Standard & Poor's said it may cut the nation's credit rating to junk if the economy deteriorates further. </b>
Stocks fell after the government released figures showing industrial output gained 3.8 percent in May from a year earlier, almost half the median forecast in a Bloomberg survey. Bonds dropped after S&P said its BBB- ranking on India's long-term local currency debt may be lowered to ``speculative grade.''
<b>``A rating downgrade would be a blow to India</b>,'' said Ramya Suryanarayanan, an economist at DBS Bank Ltd. in Singapore. ``Heading in that direction isn't good as investors are already panicking about inflation, growth and fiscal prospects.''
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Another proud moment for Moron Singh.
Stocks fell after the government released figures showing industrial output gained 3.8 percent in May from a year earlier, almost half the median forecast in a Bloomberg survey. Bonds dropped after S&P said its BBB- ranking on India's long-term local currency debt may be lowered to ``speculative grade.''
<b>``A rating downgrade would be a blow to India</b>,'' said Ramya Suryanarayanan, an economist at DBS Bank Ltd. in Singapore. ``Heading in that direction isn't good as investors are already panicking about inflation, growth and fiscal prospects.''
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Another proud moment for Moron Singh.