New Delhi: In a much-anticipated move, global rating agency Moody’s on Tuesday affirmed India’s sovereign rating, upgrading the country’s outlook to ‘stable’ from ‘negative’.
According to reports, the rating agency has also revised India’s foreign-currency and local-currency long-term issuer rating and local-currency senior unsecured rating at Baa3.
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Additionally, Moody’s has also affirmed India’s other short-term local currency rating at P-3.
The upgradation comes amid high chances of India’s GDP growth rate for the July-September quarter being likely in the range of 7-8 per cent.
The decision to change the outlook to stable reflects Moody’s view that the downside risks from negative feedback between the real economy and financial system are receding, the agency said in an official statement.
Meanwhile, it also said that the affirmation of Baa3 rating balances India key credit strengths, which include a large and diversified economy with high growth potential, a relatively strong external position and a stable domestic financing base for government debt, against its principal credit challenges, it added.
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In the first quarter of financial year 2021-22, India’s GDP witnessed a growth of 20.1 per cent compared to the same period of the last fiscal.
In May this year, Moody’s Investors Service on Tuesday revised its India GDP forecast down to 9.3 per cent from 13.7 per cent for fiscal 2021.
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