<<Aiii>> Does India deserve the ratings downgrade by S&P?

The answer to the question will depend on who is answering it! The
Finance Minister and a Deputy Governor of RBI brushed the S&P ratings
downgrade aside as if it was a fly buzzing around while you were
trying to enjoy your breakfast. An irritation at best, but of no
particular significance.

Adrian Mowat of JP Morgan had a different view. He didn't expect that
FII or FDI inflows would be affected by much. The GAAR provisions, if
applied retrospectively, would cause much greater damage to overseas
investor sentiments.

However, those companies that had borrowed large sums of money through
the FCCB route during the hey-days of 2006-2007 may be in a spot of
bother. Most of their share prices are trading at a small percentage
of the soaring heights they reached during the final stages of the
previous bull market. Converting the FCCBs to equity at current lower
prices may not be an option because the promoters may lose control.

The other option is to repay the amounts borrowed. This is where the
problem may lie.

Read more at:

http://tinyurl.com/mobugobu

--
Independent Investor Handbook
http://tinyurl.com/3octm2r

Ultimate Technical Analysis Handbook
http://tinyurl.com/yej8kem

How to Use Bar Patterns to Spot Trade Setups
http://tinyurl.com/yhszv6t

www.groups.google.com/group/Aiii

Disclaimer
AIII group is solely meant for healthy discussions among fellow members.

Moderators request all members to conduct their online affairs with full regard to the prevailing laws, since it is the individual members who would be held liable for posting of copy-right materials or violation of any other laws.

Group Owner / Moderators donot have the resources to screen the content of every message that users of google group services (like Aiii) send and will not be held liable for any posts which violate copyright laws or any applicable law.

Moderators will also remove individual members from the group, if we receive complaints regarding law violations.