CareEdge Launches Sovereign Ratings for 39 Countries
CareEdge Global IFSC Ltd, a subsidiary of CARE Ratings Ltd, has introduced its Sovereign Ratings for 39 countries, marking its entry into the Global Scale Ratings space. This makes CareEdge the first Indian credit rating agency to evaluate global economies, offering long-term foreign currency ratings.
India’s Rating and Economic Outlook
In its inaugural release, CareEdge assigned a BBB+ rating to India, highlighting the country’s robust post-pandemic recovery and focus on infrastructure investments. The assessment projects India’s GDP growth to be between 6.5-7% in the coming years. India’s government debt is expected to decrease to 78% of GDP by FY30 and further to 73.5% by FY35, driven by healthy nominal GDP growth. However, high government debt levels and weak debt affordability are noted as key constraints.
Statements from CareEdge Leaders
Mehul Pandya, Managing Director & Group CEO of CareEdge, stated, “This is a significant milestone for us in our journey towards becoming a global knowledge-based institution.” He emphasized the importance of transparency in sovereign ratings methodology. Revati Kasture, Executive Director at CareEdge Ratings, mentioned that their methodology ensures equal treatment of both developed and emerging economies.
Global Ratings Overview
CareEdge has also rated 38 other countries. Top-rated nations include Germany, the Netherlands, Singapore, and Sweden, all with AAA ratings. Australia, Canada, and the USA received AA+ ratings, while France, Japan, and the UK were rated AA-. China was assigned an A rating. The BBB+ category, where India is placed, also includes Botswana and the Philippines.
Key Economic Insights
Rajani Sinha, Chief Economist at CareEdge Ratings, highlighted India’s strong reform commitment with initiatives like Digital India and the Production Linked Incentive scheme. The government’s focus on competitiveness, foreign trade, and infrastructure investments are seen as positives, along with the demographic dividend.
Launch Event
The Sovereign Ratings report was launched at an event in GIFT City, Gandhinagar, India, attended by industry leaders and policymakers, including K.V. Kamath, Ashishkumar Chauhan, and Sanjeev Sanyal.
Doubts Revealed
CareEdge -: CareEdge is a company that provides ratings and assessments for countries and businesses. It helps investors understand the financial health and stability of different places.
Sovereign Ratings -: Sovereign Ratings are scores given to countries based on their economic health and ability to pay back debts. It’s like a report card for a country’s economy.
BBB+ rating -: A BBB+ rating is a good score that shows India has a strong economy and is recovering well after the pandemic. It means India is a safe place for investors to put their money.
GDP growth -: GDP growth refers to the increase in the value of all goods and services produced in a country. A 6.5-7% growth means India’s economy is expected to grow at a healthy rate.
Government debt -: Government debt is the money that the government borrows to pay for things like roads, schools, and hospitals. A decrease in debt means the government is managing its money well.
Gandhinagar -: Gandhinagar is the capital city of the Indian state of Gujarat. It is where the launch event for CareEdge’s Sovereign Ratings took place.
Transparency -: Transparency means being open and clear about information. CareEdge’s ratings help investors see the true economic situation of countries.
