Markets

Moody’s positive about India; Fitch reaffirms stable outlook

Our Bureau New Delhi | Updated on January 24, 2018 Published on April 09, 2015

Both rating agencies affirmed sovereign ratings





Narendra Modi’s Government got a booster from global rating agencies on Thursday. While Moody’s revised its outlook for India to ‘positive’ from ‘stable’, Fitch reaffirmed its ‘stable’ outlook. A broad-based structural reforms agenda after a couple of years of limited progress was cited as the key reason.

Finance Minister Arun Jaitley termed the revision by Moody’s as a significant development, but said: “We have to do more.”

Chief Economic Advisor Arvind Subramanian felt the revision validates the government’s reform programme. “It also confirms something that we have been saying for some time now: that the growth and macro-economic prospects of the economy are improving,” he said.

Both Moody’s and Fitch kept the sovereign rating unchanged at ‘Baa3’ and ‘BBB-’, respectively. Moody’s also talked about the possibility of a rating upgrade in the next 12-18 months. Fitch’s unchanged outlook reflects a view that upside and downside risks to the ratings are balanced.

'Baa3’ and ‘BBB-are similar ratings, indicating the last investment grade. Normally, foreign investors make decisions on the basis of sovereign ratings. They also help companies in raising money overseas.

Published on April 09, 2015
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