Which of the following statement is/are correct with reference to the sovereign credit ratings?

A. The Economic Survey 2020-21 has called for sovereign credit ratings methodology to be made more transparent, less subjective and better attuned to reflect an economy’s fundamentals.

B. According Economic Survey 2020-21 Sovereign Credit Ratings can be pro-cyclical and affect equity and debt FPI flows of developing countries, causing damage and worsening crisis.

C. Both A & B

D. None of these

Explanation:

The Economic Survey has called for sovereign credit ratings methodology to be made more transparent, less subjective and better attuned to reflect an economy’s fundamentals. The Economic Survey 2020-21 has called for sovereign credit ratings methodology to be made more transparent, less subjective and better attuned to reflect an economy’s fundamentals. According Economic Survey 2020-21 Sovereign Credit Ratings can be pro-cyclical and affect equity and debt FPI flows of developing countries, causing damage and worsening crisis.