Bangladesh has been given a Ba3 rating with a stable outlook for the third consecutive year by the sovereign rating agency Moody. According to a Bangladesh Bank press release, the country's rating is higher than Sri Lanka (B1) and Pakistan (Caa1) and one notch below India.

According to the Bangladesh bank, some of the key factors contributing to Moody's ratings of the country are the track record of macroeconomic stability and growth prospects, record of full and timely debt repayment to its creditors.

Apart from this steps taken to alleviate external pressures on the economy by the authorities to tighten monetary policy, restrain import demand, greater exchange rate flexibility and a largely stable banking system that poses manageable contingent risks to the governments balance sheet have also contributed to the stable rating.

The credit rating agency has released its report following a recent assessment visit by its officials during which they had meetings with Bangladesh Bank, Ministry of Finance, private sector officials, civil society and academics.

Corporate Affairs Minister Veerappa Moily has strongly criticised the global rating firms for downgrading India's credit outlook. On the sidelines of a function organised by Assocham, Mr. Moily said, there was no economic tsunami in the country and they should redesign their assessment parameters. Mr. Moily added that agencies have been using political parameters too when they should stick to economic parameters only. Mr. Moily's comments came against the backdrop of Standard & Poor's as well as Fitch downgrading India's credit outlook to negative, citing corruption and lack of reforms.

The ratings agency Moody's has cut the credit rating on 28 of Spain's banks one week after the country asked for money to support them. The move follows a cut to the Spanish government's own credit rating to just above junk status earlier this month. Moody's said in a statement that Spain's reduced creditworthiness implies a weaker credit profile for Spanish banks. Among the downgrades was a cut to Banco Santander. Its long-term rating was cut to Baa2 from A3 and that rating is itself under review for a possible further downgrade. But Moody's kept Santander one notch above the sovereign rating of Baa3, the Moody's release noted, because of the bank's geographic diversity and what it sees as its manageable exposure to Spanish sovereign debt. Banco Bilbao Vizcaya Agentaria was also among those whose ratings were cut.

Earlier yesterday Spain formally asked for money to help support its banks after an independent audit of Spain's banks last week found that they will need up to 62 billion euros in extra funding. European authorities had already agreed to provide up to 100 billion euros ahead of assessments of the banks' needs.

Another global rating agency Fitch today lowered India's credit rating outlook to negative, citing corruption, inadequate reforms, high inflation and slow growth as reasons for the revision. The agency said that India faces an awkward combination of slow growth and elevated inflation. Fitch also added that India is also facing structural challenges surrounding its investment climate in the form of corruption and inadequate economic reforms".

Standard and Poor's (S&P) had in April lowered India's rating outlook to negative from stable. It also warned on June 11 that the country may be the first in the BRIC grouping to falter and its sovereign credit rating may slip below investment grade.

The credit ratings agency Moody's has downgraded the credit ratings of six German Banks.

In a statement, Moody's said it was doing so because the Banks faced risk, should the Euro crisis deepen.