IT stocks fall as Moody’s downgrades US sovereign credit rating to ‘AA1’

Indian IT stocks declined and the Nifty IT fell by 1.3 per cent on Monday after Moody’s downgraded the US sovereign credit rating last week to “AA1” from “AAA”. All the constituents of the IT index traded with losses. Mphasis, which fell by 2.5 per cent, declined the most, followed by Infosys, which fell 1.9 per cent, and Coforge, which dropped 1.8 per cent.

Moody’s said its downgrade reflects the increase over more than a decade in US government debt and interest payment ratios to significantly higher levels than similarly rated sovereigns.