Moody’s have upgraded India’s credit rating: Here is all you need to know
Moody’s have upgraded India’s credit rating for first time in 13 years. It was upgraded by a notch to Baa2 with a stable outlook citing improved growth prospects driven economic and institutional reforms.
Notably, the rating upgrade has come after a gap of 13 years. In was in 2004 when Moody’s upgraded India’s rating to Baa3. In 2015, the rating outlook was changed to positive from stable.
Moody’s is betting high on array of policy changes by Prime Minister Narendra Modi. The Baa3 rating was the lowest investment grade – just a notch above junk ‘status’.
In an official statement Moody said, “The decision to upgrade the ratings in underpinned by Moody’s expectation that continued progress on economic and institutional reforms will, over time, enhance India’s high growth potential and its large and stable financing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium term.”
According to reports, the global rating agency has cautioned that high burden remains a constraint on India’s credit profile.
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