Facebook hires NIT Warangal student for Rs 45 lakh

Facebook hires NIT Warangal student for Rs 45 lakh
Follow @achu90


It's raining lucrative jobs at NIT Warangal which has had the best placement season so far. The 51-year-old institute started it's recruitment drive on August 15 and already has a 21-year-old fourth year BTech computer science student securing the highest ever pay package of Rs 45 lakh per annum.

The offer, made by Facebook, has created a record of sorts here. The institute confirmed that the student will be joining the technical wing of the social networking giant, as soon as he completes his course in March next year.

This has set a new benchmark at NIT Warangal in that the highest salary any student from the institute had bagged so far was Rs 20 lakh per annum. From the 2010-11 batch as many as three students had got jobs that paid them Rs 20 lakh per annum, sources at NIT said. It is not just the 21-year-old whizkid who has bagged a hefty package this year.

According to sources, the salaries offered to students so far range anywhere between Rs 5 to Rs 12 lakh per annum. The recruitment process for this year that started on August 15 is expected to last till March 2012. Sources said that most of the recruiters so far are IT companies.

About 30 students from computer science stream of the institute have already been recruited. Eight companies have come in for recruitment in the first round so far. According to NIT officials, this year other than the usual brand of companies several new ones have expressed interest in hiring. "Companies have now shed the recession blues completely and are looking for fresh candidates to recruit.

Many of them like Microsoft, Amazon, Oracle and Google could recruit more number of freshers than they did last year," said a senior professor from the institute. Last year, 92% students from the B Tech batch of the institute and 50 % students from M Tech batch were recruited by companies.

The average pay package offered by companies last year was between Rs 6 and Rs 7 lakh per annum. The institute officials are expecting a considerable increase in the pay packages this year. NIT professors said that this year, several companies have been vying for the first interview slots with students.

"Most of the IT companies are willing to pay really well to bright students who get absorbed in the first or second interview. The companies who come for interviews later could offer bigger packages to students. We'll have to wait and watch what the salary trend this year is," said an official from NIT.

Enter your email address:

Delivered by FeedBurner

Jan Lokpal Bill

Jan Lokpal Bill
Follow @achu90


The Jan Lokpal Bill (Hindi: जन लोकपाल विधेयक), also referred to as the citizens' ombudsman bill is a proposed independent anti-corruption law in India. Anti-corruption social activists proposed it as a more effective improvement to the original Lokpal bill, which is currently being proposed by the Government of India[1]. The prefix Jan (translation: citizens) was added to signify the fact that these improvements include input provided by "ordinary citizens" through an activist-driven, non-governmental public consultation.[2][3]

The Jan Lokpal Bill aims to effectively deter corruption, redress grievances of citizens, and protect whistle-blowers(a person who tells the public or someone in authority about dishonest or illegal activities occurring in a government department, public or a private organization or a company).

If made into law, the bill would create an independent ombudsman body similar to the Election Commission of India called the Lokpal (Sanskrit: protector of the people). It would be empowered to register and investigate complaints of corruption against politicians and bureaucrats without prior government approval[4]. First passed the Lok Sabha in 1968[5], the bill has failed to pass the Rajya Sabha and become law for over four decades.[6]

In 2011, civil activist Anna Hazare started a Satyagraha movement by commencing an indefinite fast in New Delhi to demand the passing of the bill. The movement attracted attention in the media, and hundreds of thousands of supporters, in part due to the organizational skills of Arvind Kejriwal [7]. Following Hazare's four day hunger strike, Indian Prime Minister Manmohan Singh stated that the bill would be re-introduced in the 2011 monsoon session of the Parliament[8].

Accordingly, a committee of five Cabinet Ministers and five social activists attempted to draft a compromise bill merging the two versions but failed. The Indian government went on to propose its own version in the parliament, which the activists reject on the grounds of not being sufficiently effective and called it a "toothless bill"[9].[why?]

The All-India Confederation of SC/ST Organisations, representing the Dalits and backward castes, expressed opposition to the bill proposed by Anna Hazare as well as to the government's version of the bill. The confederation opposed Hazare's proposed bill saying that it will be above the constitution and that proposers of the bill have support from elements who oppose reservation.[10]

Background

The Lokpal bill was first introduced by Shanti Bhushan in 1968[5] and passed the 4th Lok Sabha (Upper house) in 1969. But the Rajya Sabha was dissolved before the bill got through the Rajya Sabha (upper house of the Parliament of India).[11] The Subsequent versions were re-introduced in 1971, 1977, 1985, 1989, 1996, 1998, 2001, 2005 and in 2008,[12] but none of them passed. The bill is inspired of setting up an independent commission like Independent Commission Against Corruption (Hong Kong) (ICAC).[13][14]

Renewed calls for the bill arose over resentment of the major differences between the draft 2010 Lokpal Bill prepared by the government and that prepared by the members of the associated activists movement — N. Santosh Hegde, a former justice of the Supreme Court of India; Lokayukta of Karnataka; Shanti Bhushan; Arvind Kejriwal; Prashant Bhushan, a senior lawyer in the Supreme Court; and members of the India Against Corruption movement[2].JAN LOKPAL

The bill's supporters consider existing laws too weak, full of contradictions and insufficiently empowered to combat corruption.[15][16] On the other hand, critics of the Jan Lokpal Bill argue that the bill attempts to supersede existing constitutional bodies and attempts to create a super-institution with sweeping powers, which can be dangerous for the future of democracy.[17]

Key features of proposed bill

Some important features of the proposed bill are:[2]

1. To establish a central government anti-corruption institution called Lokpal, supported by Lokayukta at the state level.
2. As in the case of the Supreme Court and Cabinet Secretariat, the Lokpal will be supervised by the Cabinet Secretary and the Election Commission. As a result, it will be completely independent of the government and free from ministerial influence in its investigations.
3. Members will be appointed by judges, Indian Administrative Service officers with a clean record, private citizens and constitutional authorities through a transparent and participatory process.
4. A selection committee will invite short-listed candidates for interviews, videorecordings of which will thereafter be made public.
5. Every month on its website, the Lokayukta will publish a list of cases dealt with, brief details of each, their outcome and any action taken or proposed. It will also publish lists of all cases received by the Lokayukta during the previous month, cases dealt with and those which are pending.
6. Investigations of each case must be completed in one year. Any resulting trials should be concluded in the following year, giving a total maximum process time of two years.
7. Losses caused to the government by a corrupt individual will be recovered at the time of conviction.
8. Government officework required by a citizen that is not completed within a prescribed time period will result in Lokpal imposing financial penalties on those responsible, which will then be given as compensation to the complainant.
9. Complaints against any officer of Lokpal will be investigated and completed within a month and, if found to be substantive, will result in the officer being dismissed within two months.
10. The existing anti-corruption agencies (CVC, departmental vigilance and the anti-corruption branch of the CBI) will be merged into Lokpal which will have complete power and authority to independently investigate and prosecute any officer, judge or politician.
11. Whistleblowers who alert the agency to potential corruption cases will also be provided with protection by it.

Difference between government and activist drafts

Highlights

Difference between Jan Lokpal Bill and Draftll 2010

Jan Lokpal Bill (Citizen's Ombudsman Bill):

1.Lokpal will have powers to initiate suo motu action or receive complaints of corruption from the general public.
2.Lokpal will have the power to initiate prosecution of anyone found guilty.
3.Lokpal will have police powers as well as the ability to register FIRs.
4.Lokpal and the anti corruption wing of the CBI will be one independent body.
5.Punishments will be a minimum of 10 years and a maximum of up to life imprisonment.

Draft Lokpal Bill (2010):

1.Lokpal will have no power to initiate suo motu action or receive complaints of corruption from the general public. It can only probe complaints forwarded by the Speaker of the Lok Sabha or the Chairman of the Rajya Sabha.
2.Lokpal will only be an Advisory Body with a role limited to forwarding reports to a "Competent Authority".
3.Lokpal will have no police powers and no ability to register an FIR or proceed with criminal investigations.
4.The CBI and Lokpal will be unconnected.
5.Punishment for corruption will be a minimum of 6 months and a maximum of up to 7 years.

Detailed

The following table details differences between the Government and activist backed versions[19][20].[21]

Comparision SlideShow uploaded by India Against Corruption.

Issue

Prime Minister
The Jan Lokpal Bill - Can be investigated with permission of seven member Lokpal bench.
Government's Lokpal Bill - PM can be investigated by Lokpal after she/he vacates office

Judiciary
Jan Lokpal Bill - Can be investigated, though high level members may be investigated only with permission of a seven member Lokpal bench
Government's Lokpal Bill - Judiciary is exempt and will be covered by a separate "judicial accountability bill".

Conduct of MP's
Jan Lokpal Bill - Can be investigated with permission of seven member Lokpal bench.
Government's Lokpal Bill - Can be investigated, but their conduct within Parliament, such as voting, cannot be investigated

Lower bureaucracy
Jan Lokpal Bill - All public servants would be included
Government's Lokpal Bill - Only senior officers (Group A) will be covered

Anti-corruption wing of the Central Bureau of Investigation (CBI)
Jan Lokpal Bill - The Anti-corruption wing of the CBI will be merged into the Lokpal
Government's Lokpal Bill - The Anti-corruption wing of the CBI not be merged into the Lokpal.

Removal of Lokpal members and Chair
Jan Lokpal Bill - Any person can bring a complaint to the Supreme Court, who can then recommend removal of any member to the President
Government's Lokpal Bill - Any "aggrieved party" can raise a complaint to the President, who will refer the matter to the CJI.

Removal of Lokpal staff and officers
Jan Lokpal Bill - Complaints against Lokpal staff will be handled by independent boards set-up in each state, composed of retired bureaucrats, judges, and civil society members
Government's Lokpal Bill - Lokpal will conduct inquiries into its own behavior.[19]

Lokayukta
Jan Lokpal Bill - Lokakyukta and other local/state anti-corruption agency would remain in place.
Government's Lokpal Bill - All state anti-corruption agencies would be closed and responsibilities taken over by centralized Lokpal.

WhistleBlower Protection
Jan Lokpal Bill - Whistleblowers are protected by Lokpal.
Government's Lokpal Bill - No protection granted to whistleblowers by Lokpal

Punishment for corruption
Jan Lokpal Bill - Lokpal can either directly impose penalties, or refer the matter to the courts. Penalties can include removal from office, imprisonment, and recovery of assets from those who benefited from the corruption
Government's Lokpal Bill - Lokpal can only refer matters to the courts, not take any direct punitive actions. Penalties remain equivalent to those in current law.

Investigatory powers
Jan Lokpal Bill - Lokpal can obtain wiretaps ( to make a connection to a telegraph or telephone wire in order to obtain information secretly), issue rogatory letters, and recruit investigating officers. Cannot issue contempt orders.
Government's Lokpal Bill - Lokpal can issue contempt orders, and has the ability to punish those in contempt. No authority to obtain wiretaps, issue rogatory letters, or recruit investigating officers.

False, frivolous and vexatious complaints
Jan Lokpal Bill - Lokpal can issue fines for frivolous complaints (including frivolous complaints against Lokpal itself), with a maximum penalty of Rs 1 lakh.
Government's Lokpal Bill - Court system will handle matters of frivolous complaints. Courts can give 2-5 years imprisonment and fines of Rs 25,000 to 2 lakh

NGOs
Jan Lokpal Bill - NGOs not within the scope due to their role in exposing corruption.
Government's Lokpal Bill - NGOs are within the scope and can be investigated.

Enter your email address:

Delivered by FeedBurner

Nokia hands Accenture its hot potato

Follow @achu90


One of Nokia’s biggest challenges is to maintain its home-grown Symbian operating system, while simultaneously producing attractive Windows-run smartphones under its brand-new partnership with Microsoft. Exactly how that would be done was one of the questions I couldn’t yet answer in my recent two-part analysis of Nokia’s future.

It turns out the challenge will be met, in part, by offloading it onto Accenture. On Wednesday, Nokia announced that 3,000 staff – mainly Symbian software engineers – would transfer to the consultancy (an additional 4,000 jobs will be lost across Nokia).

I don’t know what the Finnish for “hot potato” is, but Accenture has been handed one.

Many of the 3,000 jobs moving to the consulting group are likely to be currently located in Finland. Many Nokians think of software as the soul of the company and many Finns think of Nokia as the soul of Finnish industry.

Symbian engineers were understandably the most nervous about the Microsoft deal when it was announced in February. As Jo Harlow, Nokia’s executive vice president for smart devices, told me last month, before these latest developments:

For people who have spent most of their Nokia career working on Symbian, the strategy is a difficult decision for them, because their pride…. has all been in the Symbian space. There’s intellectual momentum behind our strategy decision and I think the emotional commitment is building – it’s slightly behind the intellectual decision, which I think is human nature.

Accenture says that over time, it “will seek opportunities to retrain and redeploy transitioned employees” so that they aren’t stranded when Symbian comes to the end of its natural life, probably sometime in 2012. But maintaining the “emotional commitment” of Nokia veterans during that period – when some 150m Symbian smartphones still need to be sold – remains a delicate task.

Enter your email address:

Delivered by FeedBurner

U.S. downgrade not a cause of alarm - Basu

A rating downgrade of the United States, by Standard & Poor's, is not a cause of alarm, Chief Economic Adviser to Finance Ministry Kaushik Basu said on Monday.

Shares across Asia fell sharply on Monday despite efforts by global policymakers to stem a collapse in investor confidence after S&P downgraded U.S. credit rating from AAA to AA+ last week.

In early trade, the BSE Sensex fell 2.5 percent on Monday, while the rupee weakened past 45 to the dollar for the first time in five weeks following a global equities rout.

In an announcement early on Monday before the markets opened for trading, India's central bank said it would ensure adequate rupee and forex liquidity, a move to calm the jittery markets

Enter your email address:

Delivered by FeedBurner

US rating downgrade may hit India IT hiring by 1/4th

Hiring activity in the Indian IT sector, one of the biggest employers in the country, could fall by about one-fourth due to thedowngrade of the USA's credit rating and the deepening economic crisis, experts said.

It might take at least 5-6 months for the recruitment activities of the IT sector to gain momentum, they said.

"We are expecting overall almost 26 per cent dip in recruitment in IT industries from first quarter of FY'12. It'll take at least 5-6 months to get momentum in hiring in IT industries," MyHiringClub.com Founder and CEO Rajesh Kumar said.

"Due to the economic crisis in the US, the Indian IT job market is also going to be affected badly. The major reason behind this is cost-cutting in Indian companies' US division. In the near future, Indian IT companies having offices in the US are going to face a surplus in their existing manpower strength," he added.

Echoing a similar view, Info Edge (India) Group President (Finance) and CFO Ambarish Raghuvanshi said, "Recruitment would be lagging in the IT space..."

The US accounts for almost 60 per cent of the revenues of the $60 billion Indian IT industry.

Experts believe that job activity in other industries would be negatively impacted as well.

"Apart from IT, hiring activity in other industries is also going to impacted," Concord HR Works CEO Sekhar Ghotgalkar said.

The reaction comes after the US lost its 'AAA' credit rating for the first time in history, as ratings agency S&P was not convinced with the efforts being made to tackle the country's debt problems. This resulted in a bloodbath in the Indian markets.

Enter your email address:

Delivered by FeedBurner

Richest Indians rendered poorer by debt crisis

The global markets have been spiraling, thanks to the US debt crisis. Not only are we the commoners losing thousands of our hard-earned money, the country's richest aren't any much better off either.

According to this infographic made by our expert, Deepak Shenoy, the Ambani brothers have been the biggest losers with Anil Ambani's kitty getting lighter by a whooping Rs 7.6K crore closely followed by Mukesh Ambani who suffered a Rs 7.3K crore loss. IT big-wig Azim Premji, chairman of Wipro Ltd, lost almost Rs 6.6 K crore.

The BSE Sensex ended 1.7 per cent lower in trade today, led by losses in software exporter Infosys, after Standard & Poor's downgrade of the U.S. sovereign debt rating triggered a flight from risky assets.

ADAG's Anil Ambani was the highest loser in today's market slide with a loss of Rs 7,630 crore.

India's richest man, Mukesh Ambani with a $27 billion networth, and with a promoter stake of 146.39 crore shares of Reliance Industries, lost a total of Rs 7,349 crore during the market mayhem.

Telecom baron Sunil Mital who owns 36% in Bharti Airtel (the promoter shareholding includes Singtel) lost about Rs 4,531 crore.

The IT sector witnessed the maximum downslide with the sector ending 4.3 per cent. IT bellwether Infosys Technology ended 4.73 per cent lower making its founders poorer by Rs 3,173 crore.

Meanwhile, Wipro's promoter Azim Premji who holds 194.6 cr. shares of Wipro saw his market value fall by Rs 6,626 crore. The shares tanked 2.54 per cent on the BSE.

Others in the list include, HCL promoter Shiv Nadar, who with a total of 44 crore shares in the company lost Rs 2,962 crore, DLF promoter KP Singh, whose market value fell by Rs 4,645 core, and the Jindals who saw their shares tank by Rs 2,608 crore.

Here's a look at how much their market value has changed during the week:

Globally, even the world's richest man, Carlos Slim, lost $8 billion this week (Aug 1-8), while steel magnate and Britain's richest Indian Lakshmi Mittal lost £ 2.16 billion.

Bill Gates and Warren Buffet, however, have been luckier with their portfolios, Gates's Microsoft Corp. dropped 5.3% this week before Friday, while Buffett's Berkshire Hathaway Inc. slid 4.3%.

Enter your email address:

Delivered by FeedBurner

RBI calms investors; markets slide

MUMBAI (Reuters) - The Reserve Bank of India said Monday it would ensure adequate rupee and forex liquidity, in a move to calm markets after a U.S. rating downgrade rattled investors already reeling under a gloomy world economy.

The announcement just before the markets opened for trading failed to ease jitters and shares fell more than 3 percent, while the rupee weakened to its lowest in five weeks. Bond yields fell to 3-week troughs as investors sought safe-haven government securities.

The RBI, which has raised interest rates 11 times since mid-March 2010 to control high inflation, said the country's economy had high resilience to weather the storm.

"While downside risks to growth may have increased in the wake of global developments, they are likely to have limited impact," the central bank said.

The RBI, supported by India's foreign exchange reserves of more than $300 billion, said it was monitoring the global situation and would "respond quickly and appropriately to the evolving situation".

Shares across Asia fell sharply on Monday despite efforts by global policymakers to stem a collapse in investor confidence after S&P downgraded U.S. credit rating.

The United States lost its top-tier AAA credit rating from Standard & Poor's on Friday, hours after investors alarmed by the euro zone debt crisis forced Italy to speed up an austerity drive.

Around 60 percent of India's foreign currency assets, which comprise the bulk of the forex reserves, are estimated to be held in U.S. Treasury paper and the global developments will make the RBI's job more tough.

India has been trying to keep a lid on stubbornly high inflation even as the economy shows signs of slowing.

Headline inflation rose to 9.44 percent in June, above the central bank's comfort level of 7 percent for end-March.

By 0552 GMT, the main stock index was down 2.9 percent, while the partially convertible rupee was at 45.01/02 per dollar against 44.735/740 on Friday. The benchmark 10-year bond yield was down 9 basis points at 8.22 percent.

U.S. investment bank Goldman Sachs on Monday upgraded India to "market weight" from "underweight," given a likely turn in the macro cycle, lower oil prices, lower valuation, and policy reform.

The RBI said the banking system does not face any immediate liquidity stress and banks can borrow by pledging government bonds and also avail a recently introduced emergency borrowing facility of the central bank.

"This will help stabilize the call rate within the LAF corridor, which is currently 7-9 percent," the RBI said, referring to the liquidity adjustment facility.

Enter your email address:

Delivered by FeedBurner

Q+A-S&P's downgrade of the United States

NEW YORK (Reuters) - The United States lost its top-tier AAA credit rating from Standard & Poor's on Friday, a move that will affect the country's borrowing costs and investor opinion of U.S. assets. Here is a Q+A on what the downgrade means for investors, consumers and to the country.

WHAT IS A DOWNGRADE?

Standard & Poor's, one of the three major credit rating agencies that assign scores to debt issued by institutions, municipalities, and governments, said there is a heightened degree of risk in holding debt issued by the United States. So it lowered its rating from the AAA, the highest possible level, by one notch to AA+. It also said the outlook is negative.

WHY DID IT LOWER THE RATING?

The credit rating agency believes the outstanding debt of $14.3 trillion and projected deficits for coming years in the United States no longer warrant the top-tier rating that it had assigned to the United States since 1941. It also said that the political environment does not build confidence that the United States can agree on how to lower the deficit in a meaningful way any time soon.

DOES THIS MEAN THAT U.S DEBT IS NO LONGER SAFE?

No. At AA+, the U.S. is still considered to have a "strong" ability to meet its obligations. In fact, only a handful of countries now have the AAA rating -- among them Canada, Germany, France and the United Kingdom. In addition, Treasuries have rallied this week, driving the yield on the benchmark 10-year note to 2.34 percent, its lowest level in about 10 months. This suggests people still view the U.S. as a safe place to invest.

BUT WASN'T A DEBT DEAL JUST SIGNED IN CONGRESS?

Yes, but the savings from this are projected at $2.1 trillion. S&P has said that a larger level of savings is needed -- at least $4 trillion either through spending reductions or tax increases - are needed in order to start lowering U.S. deficits in coming years.

WHAT IMPACT DOES THE DOWNGRADE HAVE?

Over time, a lower rating will cause investors who buy U.S. government debt to demand a higher interest rate to hold that debt to reward them for the risk. If that is the case, benchmark long-term interest rates will rise. Most major rates, including the debt of corporations, mortgages purchased by investors, and other types of loans, are priced in relation to the U.S. Treasury benchmark. That means borrowing costs across a number of spectrums over time will rise, making loans and bonds more expensive. The more an individual or company is devoting to interest payments, the less they have for other activities.

SO WHAT WILL IT COST?

The downgrade could add up to 0.7 of a percentage point to U.S. Treasuries' yields, increasing funding costs for public debt by some $100 billion, according to SIFMA, a U.S. securities industry trade group.

WHO OWNS U.S. DEBT?

Other than the U.S. Federal Reserve , the most recent data from the U.S. Treasury shows that China, with $1.16 trillion in U.S. Treasury securities, is the biggest holder of our debt. China has repeatedly warned of the unsustainable trend of U.S. deficits and has talked of diversifying its holdings to other economies. But because China maintains the value of its currency through buying of U.S. dollars, it is likely to continue to be a major holder of Treasury securities for some years ahead.

WILL MY MONEY MARKET FUND HAVE TO SELL ITS TREASURY DEBT?

Not likely. The credit rating change affects long-term debt -- the short-term credit rating of the U.S. is A-1+, the highest short-term rating. Money market funds with short-term debt are unlikely to be affected.

WILL INVESTORS PREFER DEBT FROM HIGHER RATED COUNTRIES?

This is possible. Some large investors, such as William Gross of PIMCO, have said other markets such as Canada offer more value. But the U.S. market retains significant appeal because its bond market was more than $35 trillion at the end of March 2011, according to SIFMA. No other bond market is close to that size.

NOW THIS HAS HAPPENED, IS U.S. SAFE FROM OTHER DOWNGRADES?

No. To begin with Standard & Poor's has assigned a "negative" outlook to the US long-term credit rating. That means another downgrade was possible in the next 12 to 18 months if it does not see an improvement in debt reduction.

The other ratings agencies, Moody's and Fitch, currently still have a AAA rating on U.S. debt, which they just affirmed. But both of those agencies have suggested the U.S. could also be downgraded if projected government deficits are not reined in. Moody's currently has U.S. debt on review for possible downgrade.

HOW LONG HAS THE U.S. HAD AN AAA RATING?

S&P has maintained a AAA rating on the U.S. since 1941. Moody's has had an Aaa rating on the U.S. since 1917; Fitch's top-tier AAA rating dates to 1994.

Enter your email address:

Delivered by FeedBurner

Asia would be hit harder by a second global crisis

S&P: Asia would be hit harder by a second global crisis

Arrangement of various world currencies including Chinese Yuan, Japanese Yen, US Dollar, Euro, British Pound, Swiss Franc and Russian Rouble pictured in Warsaw January 26, 2011. REUTERS/Kacper Pempel/Files
On Monday 8 August 2011, 9:23 AM

SYDNEY (Reuters) - A new global financial crisis would hit Asia harder than the last one, especially nations heavily exposed to offshore markets or still repairing budgets from the 2008-2009 crisis, credit ratings agency Standard and Poor's said on Monday.

The agency, which incurred Washington's wrath at the weekend by cutting its AAA rating by a notch to AA+, said it was not predicting a rerun of the credit crisis that crippled markets and tipped the world economy into recession three years ago.

But it warned of more sovereign downgrades in Asia next time around, if its assumptions turned out to be wrong.

"If a renewed slowdown comes, it would likely create a deeper and more prolonged impact than the last one," S&P said in a statement.

"The implications for sovereign creditworthiness in Asia-Pacific would likely be more negative than previously experienced, and a larger number of negative rating actions would follow. We wait to see."

S&P said it assumed Europe's debt crisis and Washington's debt problems were unlikely to lead to "abrupt dislocations" in the financial systems and economies of major developed nations.

On that basis, it added, its historic downgrade of the U.S. credit rating would have no immediate knock-on impact on sovereign borrowers in the Asia-Pacific.

It cited the Asia Pacific region's sound domestic demand, relatively healthy corporate and household sectors, plentiful external liquidity and high savings rates -- though it listed New Zealand, Japan and Vietnam as exceptions to this.

The S&P statement took on a much darker tone when considering the possibility that its assumptions were too rosy, noting that Asia still relied heavily on exports to the West.

"Given the interconnectivity of the global markets, an unexpectedly sharp disruption in developed-world financial markets could change the picture," it said, noting that the U.S. and European economies could again contract or stagnate.

"In this scenario, the experience of the global financial crisis of 2008-2009 shows that export-dependent economies with large exposures to the U.S. and/or Europe would feel the most pronounced economic impacts," S&P said.

"It's not likely things would be very different this time."

The agency listed those countries particularly vulnerable to disruptions in offshore capital markets as Pakistan, Sri Lanka, Fiji, Australia, New Zealand, South Korea and Indonesia.

It also said several nations, again including New Zealand, were also still repairing their government finances and could be more constrained in responding to a fresh global crisis.

"The adverse impact on Asia Pacific in that scenario would likely require governments to use their balance sheets to support their economies and financial sectors once again," S&P said.

"And in our opinion, most governments would promptly oblige. But some of them continue to bear the scars of the recent downturn -- the fiscal capacities of Japan , India, Malaysia, Taiwan and New Zealand have shrunk relative to pre-2008 levels."

Enter your email address:

Delivered by FeedBurner