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Global ratings agency Moody's Investors Service has changed the outlook for Indian non-financial corporates to stable from negative.
This change in outlook is driven by economic recovery and political stability, Moody's said in its 2015 outlook for non-Indian financial corporates.
The outlook reflects Moody's expectation for fundamental business conditions in the sector over the next 12 to 18 months.
"We changed the outlook for Indian non-financial corporates to stable from negative, reflecting our review that economic recovery, enhanced access to the global markets and successful implementation of pro-market policies will lead to improved corporate cash flows and be broadly supportive of business growth", said Vikas Halan, a Moody's Vice President and senior credit officer.
Improved external vulnerability should also reduce foreign exchange risk for Indian corporates, despite gradual interest rate normalisation by the US Federal Reserve.
Moody's expects India GDP growth at 5.6 per cent for the fiscal year ended March 2015, led by an acceleration in manufacturing activity.
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