S&P did not revise soverign rating of India but Fitch had a slightly different view this time. Few months back S&P downgraded US and European Union resulting in crash of financial markets across the globe. Financial market tanked in the range of 10% throughout the world, such was the impact of this news. How exactly S&P or any other rating agency decides the sovereign rating? Why the rating downgrades or upgrades impacts investor’s sentiment so much? Let’s try to find out the answer.