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Moody's to PM Narendra Modi: Rein in members or risk losing credibility

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  • Moody's to PM Narendra Modi: Rein in members or risk losing credibility

    NEW DELHI: Prime Minister Narendra Modi must keep his party's motor mouths in check or risk losing credibility domestically and globally, Moody's Analytics has warned in a rare and blunt intervention by an international commentator on a hot-button political topic.

    The research and analysis arm of Moody's Corporation, said crucial reforms have run into obstructionist opposition, but noted that the government too hadn't helped itself. It added that the outcome of the ongoing Bihar elections could prove pivotal for the prime minister and the government. "The government also hasn't helped itself, with controversial comments from various BJP members.

    While Modi has largely distanced himself from the nationalist gibes, the belligerent provocation of various Indian minorities has raised ethnic tensions," said Faraz Syed, associate economist at Moody's Analytics in the report that was released on Friday.
    More @ ET

    This was coming, especially when the elected PM doesn't sack/speak out against goons in his party who are spreading religious intolerance and trying to destroy the social fabric of the country. There's still time, to rein in those hate-mongers and deliver on the development promise. Let's see, if Mr. Modi can walk the talk, talk he can.
    Politicians are elected to serve...far too many don't see it that way - Albany Rifles! || Loyalty to country always. Loyalty to government, when it deserves it - Mark Twain! || I am a far left millennial!

  • #2
    You can go ahead and use this to bash the government. But just keep two facts in mind.

    1. The report is from Moody's Analytics which is completely separate from Moody's Investors Service - which is the Credit Rating agency (one of the Big 3 along with S&P and Fitch). Moody's Analytics was something started recently in 2007 as opposed to MIS which has existed since 1909. If you read the original report it has a clear disclaimer saying that the report does not reflect the views of the Moody's Credit rating service.

    2. The original report talks far more about the actual economic challenges facing India (like the stalled parliament proceedings in the Rajya Sabha leading to many economic reforms being left hanging). The TOI and other English media in India on the other hand only talk about intolerance which is the current favorite stick to beat the govt. with. Even this report is the view of a single analyst at Moody's Analytics having no bearing on how Moody's Investors Service operates or India's sovereign credit rating.
    Last edited by Firestorm; 03 Nov 15,, 00:19.

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    • #3
      Meanwhile, here's what Moody's Investors Service had to say:

      Good news at last: Moody's raises outlook for Indian banks to stable, sees NPAs falling

      Moody's Investors Service today upgraded its outlook for India's banking system to 'stable' from 'negative' on expectation that a gradual improvement in the operating environment for lenders will lead to lesser growth in bad loans in future.

      The stable outlook on India's banking system over the next 12-18 months reflects our expectation that the banks' gradually improving operating environment will result in a slower pace of additions to loans problem, leading to more stable impaired loan ratios," Moody's VP & Senior Credit Officer Srikanth Vadlamani said.

      In the report titled 'Banking System Outlook - India: Gradual Improvement in Operating Environment Drives Stable Outlook', Moody's said the stable outlook is based on Moody's assessment of five drivers -- improving operating environment, stable asset risk and capital, stable funding and liquidity.

      Also stable profitability and efficiency and the government support has supported a stable outlook for the sector, it said adding the recovery in the asset quality would be U-shaped rather than V-shaped, because corporate balance sheets remain highly leveraged.

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      • #4
        Originally posted by Oracle View Post
        More @ ET

        This was coming, especially when the elected PM doesn't sack/speak out against goons in his party who are spreading religious intolerance and trying to destroy the social fabric of the country. There's still time, to rein in those hate-mongers and deliver on the development promise. Let's see, if Mr. Modi can walk the talk, talk he can.
        Interesting, I thought they would be more concerned that so far, he has not delivered on key reforms like GST, Land Bill, Labour Reform etc.
        "Is God willing to prevent evil, but not able? Then he is not omnipotent. Is he able, but not willing? Then he is malevolent. Is he both able and willing? Then whence cometh evil? Is he neither able nor willing? Then why call him God?" ~ Epicurus

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        • #5
          Originally posted by Firestorm View Post
          You can go ahead and use this to bash the government. But just keep two facts in mind.
          I don't have to keep anything in mind, as of now the opposition and the intellectuals/filmmakers/scholars are doing a fine job. :-)

          Originally posted by Firestorm View Post
          1. The report is from Moody's Analytics which is completely separate from Moody's Investors Service - which is the Credit Rating agency (one of the Big 3 along with S&P and Fitch). Moody's Analytics was something started recently in 2007 as opposed to MIS which has existed since 1909. If you read the original report it has a clear disclaimer saying that the report does not reflect the views of the Moody's Credit rating service.
          You're quoting open source information and trying to give a differentiation between the two, which many know. I'll let in something simpler. MIS analyses and gives out the credit worthiness of Government and corporate bonds, while MAnalytics provides economic research like using MIS's ratings to provide equity market's price which helps users evaluate investment oppurtunities. They also provide risk management software that is used to analyze credit data for commercial loans and to mitigate risk. They do a lot and have their own software services too. And ofcourse, MAnalytics view won't represent MIS'.

          Originally posted by Firestorm View Post
          2. The original report talks far more about the actual economic challenges facing India (like the stalled parliament proceedings in the Rajya Sabha leading to many economic reforms being left hanging). The TOI and other English media in India on the other hand only talk about intolerance which is the current favorite stick to beat the govt. with. Even this report is the view of a single analyst at Moody's Analytics having no bearing on how Moody's Investors Service operates or India's sovereign credit rating.
          Could you please post the original report here?

          Most major newspapers cited the same thing as Indian media. Do a google and read up HuffingtonPost for one example.

          Your reply, I'm sorry is in tune with the GoI's - Government dismisses Moody's warning to PM Modi, calls it opinion of junior analyst

          Now read this - Unclear whether Indian can deliver on promised reforms: Moody's

          Now this - Moody's Analytics stands by its India report, says it is part of economic outlook series

          Companies such as Moodys do not let junior associates have a free run to post garbage. Even garbage comes with the highest approvals. You might also want to go back and see that Moodys have been generous to India over the last couple of years, more than S&P. Both MIS and MAnalytics are part of Moodys Corp.
          Last edited by Oracle; 05 Nov 15,, 13:45.
          Politicians are elected to serve...far too many don't see it that way - Albany Rifles! || Loyalty to country always. Loyalty to government, when it deserves it - Mark Twain! || I am a far left millennial!

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          • #6
            Originally posted by antimony View Post
            Interesting, I thought they would be more concerned that so far, he has not delivered on key reforms like GST, Land Bill, Labour Reform etc.
            They indeed are concerned, check out my earlier post. But where is the time? Some BJP politicians utter garbage, and then the fire-fighting starts between the BJP and the opposition. Plus the BJP canot pass important legislations due to insufficient numbers in the Rajya Sabha. They also don't know how to rein in the Congress by sending in an emissary. Not every party has a problem solver like Pranab Mukherjee, the BJP certainly doesn't, as all old timers have been sidelined.
            Politicians are elected to serve...far too many don't see it that way - Albany Rifles! || Loyalty to country always. Loyalty to government, when it deserves it - Mark Twain! || I am a far left millennial!

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