Moody’s cuts India outlook to ‘negative’ from ‘stable’: Here's the reason

Global rating agency Moody's has cut its outlook on India's credit rating from ‘stable’ to ‘negative’. This is a potential first step towards a downgrade as the agency fears that India's slowdown could be prolonged and could have an impact on income growth and debt levels. As things stand, Moody's has affirmed India's credit rating at ‘BAA2’ which is the second lowest investment grade. It is not just Moody's, Nomura has handed a sharp cut to its India growth forecast. CNBC-TV18’s Latha Venkatesh explains the impact of these developments.