India gets big thumbs up in Moody's rating, upgraded to stable after 10 years
For the first time in more than a decade, Moody's Investors Service has upgraded India's sovereign rating. In what is being called a big rise with India moment, Moody's ratings have been upgraded citing continued progress in the nation's economic and institutional reforms. This is the first time since 2004 that India's government bond ratings have been upgraded. The rating agency upgraded India's rating to Baa2 from Baa3 with an outlook on the rating as 'stable'. Moody's ratings come in the backdrop of Modi government receiving flak from opposition parties over demonetisation, GST and economic slowdown. Moody's in its rating has claimed that the reforms being pushed through by the government will help stabilise debt. The last time India's rating was upgraded was during the BJP government led by Atal Bihari Vajpayee. Moody's has also raised India's long-term foreign-currency bond ceiling to Baa1 from Baa2, and the long-term foreign-currency bank deposit ceiling to Baa2 from Baa3.