In a market gripped by panic and turbulence over downgrade of US credit rating by Standard & Poor (S&P), the road ahead for companies planning to raise capital in the market through IPOs, atleast in near future, seems to be quite tough
A downgrade of US credit ratings by ratings agency Standard&Poor’s from from AAA to AA+ triggered heavy sell-offs across the global markets including on the Dalal Street. US credit rating has been lowered by S&P for the first time since granting it in 1917. S&P said that in addition to the downgrade, it is issuing a negative outlook, implying that there is a chance that it may lower the rating further within the coming years. S&P also stated it was now pessimistic about the capacity of US Congress and the administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics anytime soon.... [Read more on Indian IPO Blog Insights]
