Credit rating agencies need a hard re-look at the parameters that are used to evaluate both countries and companies, according to KPMG India chief Richard Rekhy.
“The heart of the problem is that the economy is moving too fast, and regulations aren’t keeping up. What these agencies need to do is ask themselves whether the existing parameters they use are still relevant. One set cannot be used for everybody,” Mr. Rekhy told the Hindu in an interaction on Thursday.
“Matter of fact is that credit rating agencies are playing catch-up, and as the ground realities are different, it will be painful in the short-term for everybody,” he added. Pointing out that current fiscal would continue to be marked by slow growth, Mr. Rekhy said that the FDI liberalisation last September still had not translated into action.
“The distance between talk and action is quite far. We’ve not seen much action in terms of business as people are still very unclear about what can be done and what can’t. Multi-nationals come here, looking at our consumption story, but leave after looking at the number of conditions attached,” he said.