Drishti ias current affairs
drishti current affairs magazine Published this article page no 78 Increased Borrowing Costs Poor rating increases the credit risk perception forcing emerging countries to offer greatest interest on securities to get investors interest. Financial Market Instability Often rating agencies do rating upgrades after market rallies and downgrades after downturns. It carries risk to trigger market jitters as many institutional investors can hold only investmentgrade instruments. Isolation from Capital Markets Poor ratings for commercial banks and corporate debt to subinvestment grade makes it ○ Costly for banks to issue internationally recognized letters of credit for domestic exporters and importers. ○ Firms face difficulties in issuing debt on the international capital market drishti current affairs magazine subscription buy.

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