Fitch cuts India’s sovereign rating outlook to negative

Fitch considered Saudi Arabia to be more vulnerable to future Islamic fund AUM declines than Malaysia, particularly in the event of a sustained market recovery leading to outflows from money market funds.

MUMBAI: Fitch cut its outlook on India’s sovereign rating to “negative” from “stable” and forecast a 5% contraction in growth for the current fiscal year, saying the coronavirus outbreak was extracting a heavy toll on the economy.

“The coronavirus pandemic has significantly weakened India’s growth outlook for this year and exposed the challenges associated with a high public-debt burden, ” the ratings agency said in a statement.