Moody’s upgrades India’s government bond rating to Baa2 from Baa3; changes outlook to stable from positive

The Report
Global Credit Research – 16 Nov 2017
New York, November 16, 2017 –– Moody’s Investors Service (“Moody’s”) has today upgraded the Government of India’s local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive. Moody’s has also upgraded India’s local currency senior unsecured rating to Baa2 from Baa3 and its short-term local currency rating to P-2 from P-3.
p;

Moody’s India Rating -Report-1

Moody’s India Rating -Report-2

Moody’s India Rating -Report-3

Moody’s India Rating -Report-4

The decision to upgrade the ratings is 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. In the meantime, while India’s high debt burden remains a constraint on the country’s credit profile, Moody’s believes that the reforms put in place have reduced the risk of a sharp increase in debt, even in potential downside scenarios.

Source: Moody’s Website