Moody's upgrades India's sovereign bond rating for first time in 14 years

Nothing to celebrate Moody's rating Yechury

Moody's upgradation of India's economic rating can be interpreted as a recognition of the raft of structural reforms unleashed by the current government over the last 3-4 years.

The rating agency said recent reforms had reduced India's risk of sharp rise in debt, "even in potential downside scenario".

Finance Minister Arun Jaitley, who has been taking the flak for slowing economic growth and messy implementation of GST, said the jump in India's ranking in World Bank's ease of doing business by 42 places and Friday's rating upgrade vindicated the government's belief in their "reforms process".

"The bond yields, Indian rupee and stock markets have already reacted favourably".

Moody's Investors Service upgraded its ratings on India's sovereign bonds for the first time in almost 14 years on Friday, saying continued progress on economic and institutional reform will boost the country's growth potential.

United States credit rating agency Moody's on Friday upgraded India's sovereign rating to Baa2 from its lowest investment grade of Baa, while changing the outlook for the country's rating to stable from positive, and said its was based on the Indian government's "wide-ranging programme of economic and institutional reforms". "The reform program will thus complement the existing shock-absorbance capacity provided by India's strong growth potential and improving global competitiveness", the rating agency said in a statement.

Читайте также: Is Dog Ownership Connected To Better Health?

"On the fiscal front, efforts to improve transparency and accountability, including through adoption of a new Fiscal Responsibility and Budget Management (FRBM) Act, are expected to enhance India's fiscal policy framework and strengthen policy credibility", it said.

The government's move to recapitalise public sector banks (PSBs), along with the insolvency and bankruptcy code, would help address a key weakness in India's sovereign credit profile.

Yesterday, for the first time in last 14 years, they have upgraded India's credit rating, and this is indeed big news.

Moody's specifically mentioned GST and demonetization while applauding the various reforms undertaken by the government. The measures should contribute to further strengthening of India's institutions, it said.

As per analysts, foreign portfolio investments in India can increase in the coming days, external commercial borrowings will become cheaper, and more convenient.

Moody's pegged GDP growth at 6.7 per cent in FY18 and 7.5 per cent in FY19, with similarly robust levels of growth from FY20. "In the economic survey presented earlier this year, the government criticised ratings agencies for not giving India an upgrade". This upgrade puts Moody's one notch ahead of Fitch and S&P, which now has India on BBB- (stable), noted ANZ in a research report.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2017 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Related news:

Hot News

isis-killer-beheading-video-story-top Video surfaces of Jerry Jones making a racist joke to a fan
Ноя 19, 2017 - 02:19
It was sent to The Blast because those involved thought it was important for National Football League fans to see. Jones, through a statement issued by the Cowboys on Friday, apologized.

isis-killer-beheading-video-story-top Five 'militants', one Indian soldier killed in gun battle in held Kashmir
Ноя 19, 2017 - 02:16
Gunfight erupted in Chandergeer, Jamia Mohalla area of Hajin town in northern part of Kashmir's Bandipora district, reports said. The Garud Commando is the special forces unit of the IAF.

isis-killer-beheading-video-story-top Those who had doubts must introspect: Jaitley on Moody's upgrade for India
Ноя 18, 2017 - 01:58
Welcoming the move, Finance Minister Arun Jaitley said it is a "belated recognition" of the reforms undertaken by the government. It cautioned however that high-debt burden remains a constraint on the country's credit profile.

isis-killer-beheading-video-story-top Fox News Host Debunks His Own Network's Conspiracy Claims
Ноя 18, 2017 - 01:58
The accusation first made by Peter Schweizer, the senior editor-at-large of the website Breitbart in his 2015 book Clinton Cash . In 2016, Mr Trump repeated these claims while running for President, citing them as an example of Ms Clinton's corruption.

isis-killer-beheading-video-story-top Justice League Rotten Tomatoes score LEAKED and it doesn't look good!
Ноя 18, 2017 - 01:52
Fans would still love to see the DC team come together like they've never seen before in a live-action film. Man of Steel , the 2013 Superman film that kicked off the shared universe, earned a middling 55 percent.

isis-killer-beheading-video-story-top Apple's HomePod reportedly pulled from holiday release, slated for 2018
Ноя 18, 2017 - 01:43
At $329, HomePod was poised to be one of the pricier smart speakers on the market, but it touts superior sound quality. Apple was originally planning to release the HomePod in December, but has now delayed it until 2018.

isis-killer-beheading-video-story-top Danica Patrick to end racing career at next year's Indy 500
Ноя 18, 2017 - 01:40
During her Cup career, Patrick has earned seven top-10 finishes, including a career-best sixth-place finish in Atlanta in 2014. However, this isn't the end of her career as she will compete in two races next season: the Daytona 500 and Indianapolis 500.

isis-killer-beheading-video-story-top AAA: 1 million Marylanders will travel for Thanksgiving
Ноя 17, 2017 - 01:54
Almost 51 million Americans are expected to travel next week, up just over three percent from previous year . Menendez, who has been under indictment for 2½ years, has already raised more than $2.5 million this year.

isis-killer-beheading-video-story-top SpaceX to launch a secret but significant payload Thursday ars_ab.settitle(1205153)
Ноя 17, 2017 - 01:51
Lift-off has initially been scheduled for Wednesday, but has been postponed to Thursday, due to weather conditions. Just in case the launch doesn't go as planned, SpaceX has a backup time frame, beginning at 8:00 p.m.

isis-killer-beheading-video-story-top Why Kim Kardashian Didn't Invite Her Surrogate to the Baby Shower
Ноя 17, 2017 - 01:29
Kim said the surrogate was " really excited" when she found out she would be carrying the couple's baby. What do you think of North West's baby name suggestion? "That's my kind of vibe".

isis-killer-beheading-video-story-top Al Franken apologizes after accusation he kissed and groped TV news anchor
Ноя 17, 2017 - 01:25
In her essay, Tweeden said she meant to participate in the comedy tour, hosted by the United Service Organizations, as an emcee. She also shared a photo that appears to show Franken placing his hands over her breasts while posing for the camera.

isis-killer-beheading-video-story-top SABC to broadcast 2023 World Cup Rugby announcment
Ноя 16, 2017 - 02:23
Mark Alexander, president of SA Rugby, said he was "desolated" and fumed about breaches of protocol by other bidders. We wish them every success as they turn their attention to delivering an outstanding tournament.

isis-killer-beheading-video-story-top Scotland first country to introduce minimum alcohol price
Ноя 16, 2017 - 02:22
It would enable a minimum price to be set in Wales and make it an offence for alcohol to be sold or supplied below that price. Health advocates argue that the increasing affordability of alcohol is leading to an increase in consumption.

isis-killer-beheading-video-story-top Kim Kardashian Says Crystals Helped Her Recover From Her Paris Robbery
Ноя 16, 2017 - 02:19
She plans to launch three variations of the fragrance Crystal Gardenia , Crystal Gardenia Citrus and Crystal Gardenia Oud. These will have an entirely new concept and bottles, but that was all she would say about upcoming fragrances .

isis-killer-beheading-video-story-top India takes centre stage in energy economy, to drive demand growth: IEA
Ноя 16, 2017 - 02:16
The API estimate are followed by official data from the Energy Information Administration on Wednesday. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.5 million barrels, EIA said.