New Delhi : India on Friday strongly advocated for raising its sovereign rating from the American agency Moody’s and raised questions on the parameters on the basis of which the agency gives credit ratings to different countries. According to sources, before the annual review of the sovereign rating, representatives of credit rating agency Moody’s Investors Service met the officials of the Government of India. During this, the officials highlighted the reforms and strong fundamentals of the Indian economy. If India’s rating improves, it would mean that the country is less risky. Therefore, he will have to pay less interest on the loan.
Moody’s accepts the positivity of the Indian economy
After a meeting with the representatives of the rating agency, an official said that Moody’s has accepted the positivity of the Indian economy. We are hopeful of a rating upgrade from Moody’s. Moody’s Investors Service has assigned a ‘Baa3’ sovereign credit rating to India with a stable outlook. ‘BAA3’ is the lowest rating in the investible category.
Moody’s said, big risk of rupee weakness, RBI can take tough steps
Questions were also raised on the rating parameters
Apart from the ongoing economic reforms in India, government officials also mentioned the development of infrastructure and foreign exchange reserves of US $ 600 billion in the meeting. Along with this, the officials also questioned Moody’s on its rating parameters. Apart from all the ministries related to the economy, officials of NITI Aayog also participated in this meeting. Last month, two other rating agencies Fitch and S&P had kept India’s rating unchanged at ‘BBB-‘ with a stable outlook.
