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

Sensex, Nifty touch new highs as Moody's upgrade buoys sentiments (Second Lead)

"The decision to upgrade the ratings is underpinned by Moody's expectation that continued progress on economic and institutional reforms will, over time, enhance India's high growth potential and its large and stable financing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium term", the agency's press release says. Government officials expressed hope that other credit rating agencies such as S&P and Fitch would follow suit.

The global rating firm also backed the reforms undertaken the Modi government saying; "Moody's believes that those (reforms) implemented to date will advance the government's objective of improving the business climate, enhancing productivity, stimulating foreign and domestic investment, and ultimately fostering strong and sustainable growth".

Chief Economic Advisor Arvind Subramanian, whose Economic Survey had a piece on the "poor standards" of the rating agencies, echoed these sentiments, noting that the upgrade was long overdue.

"Good news for the industry", Jindal said.

New Delhi- The ruling BJP and the government on Friday cheered USA credit ratings agency Moody's upgradation of India's sovereign ratings, with party President Amit Shah and several ministers tweeting that it was a recognition of all the good work done by the NDA. The rating upgrade comes after a gap of 13 years - Moody's had last upgraded India's rating to "Baa3" in 2004.




Moody's also upgraded ratings for a slew of public sector companies - State Bank of India, Export Import Bank of India and Indian Railways Finance Corporation - and the private sector lender HDFC Bank on Friday. The resolution of bank non-performing assets would be of supreme significance to revive the investment cycle and economic growth, stated ANZ.

Nilesh Shah, managing director, Kotak Mahindra Mutual Fund, said that that Moody's upgrade is a "recognition for recent economic reforms in India'".

Moody's expects India's debt-to-GDP ratio to rise by about 1 percentage point this fiscal year, to 69%, as nominal GDP growth has slowed following demonetisation and the implementation of GST. It had in 2015 changed rating outlook to "positive" from "stable".

Moody's Corporation, also known as Moody's, is a 108 year old financial services company from U.S., which provides credit rating for countries based on their economic growth.

Key steps that are yet to fructify include planned land and labour market reforms, which rely to a great extent on cooperation with and between states, Moody's said. It went on to list demonetisation, Aadhaar system of biometric accounts and targeted delivery of benefits through the Direct Benefit Transfer (DBT) system meant to reduce informality in the economy as other measures that had an impact.

Related news:

Hot News

isis-killer-beheading-video-story-top Over 200 FDNY Firefighters Respond to 5 Alarm Blaze in Manhattan
Nov 19, 2017 - 00:56
The fire appears to have engulfed almost the whole building and smoke can be seen high above the blaze. Dozens of people, including residents and store owners, have lined the streets of the hectic scene.

isis-killer-beheading-video-story-top A41 closed: Waddesdon Manor plane crash causes traffic chaos near Aylesbury
Nov 18, 2017 - 00:26
SEVERAL people are feared dead after a plane and helicopter collided in mid-air near a Buckinghamshire manor house this afternoon. The collision is understood to have happened near Waddesdon, in Buckinghamshire, shortly after 12noon today.

isis-killer-beheading-video-story-top US Navy: Penis in sky drawn by jet trail was 'unacceptable'
Nov 18, 2017 - 00:25
Naval Air Station Whidbey Island officials released a statement to KREM-TV confirming a Navy aircraft was to blame for the drawing.

isis-killer-beheading-video-story-top ME unemployment dips to 3.5% in October
Nov 18, 2017 - 00:12
The number of employed climbed more than 18 hundred in October, setting a record, according to the Department of Workforce. Bureau of Labor Statistics also released preliminary estimates on Thursday showing the state gained 4,800 jobs in October.

isis-killer-beheading-video-story-top Man Accidentally Shoots Himself and Wife In Church… While Discussing Church Shootings
Nov 18, 2017 - 00:11
A man in his 80s pulled out a.380 caliber Ruger handgun and said, " I carry my handgun everywhere ", according to Parks. He removed the gun's magazine, emptied the chamber and started passing it around, according to WATE in Knoxville .

isis-killer-beheading-video-story-top North Atlantic Treaty Organisation apologises after Turkey pulls out of Norway drill over incident
Nov 18, 2017 - 00:06
North Atlantic Treaty Organisation wasn't immediately able to provide any information about the alleged incident. NATO's website lists two military exercises that are now ongoing in Norway.

isis-killer-beheading-video-story-top AAA: 2017 to have most Thanksgiving travelers in 12 years
Nov 17, 2017 - 00:53
Nationally, 89 percent of travelers - 45.5 million - will go by vehicle , which is 3.2 percent higher than a year ago . Nearly 90 percent of expected travelers this Thanksgiving - or 45.5 million - are planning on taking a road trip.

isis-killer-beheading-video-story-top OnePlus 5T launched - here's how much it will cost in India
Nov 17, 2017 - 00:51
And while some of us may not be comfortable with a 6-month cycle, it exists just to make OnePlus take a stand for the next year. The 5T also retains a 3,300 mAh battery with its proprietary Dash charging feature which promises fast charging times.

isis-killer-beheading-video-story-top Wisma Putra confirms 6 Malaysians injured in Singapore's train collision
Nov 17, 2017 - 00:46
It said in a statement that a train stopped at the Joo Koon station heading westwards towards Tuas Link station. The second train was supposed to come to a complete stop 10.7m behind the first train.

isis-killer-beheading-video-story-top Donald Trump 'Sentenced to Death' for Insulting Kim Jong Un
Nov 17, 2017 - 00:45
The state newspaper of North Korea has left no stones unturned in insulting Donald Trump by even calling him a " rabid dog ". However, Xinhua news agency said he will only discuss last month's Chinese Communist Party congress.

isis-killer-beheading-video-story-top KJo launches Jhanvi-Ishaan with 'Dhadak', gets trolled for nepotism
Nov 17, 2017 - 00:41
The movie is being directed by Abhishek Kapoor and is a romantic tale set on backdrop of a pilgrimage. Dhadak is set to release on July 6, 2018, while Kedarnath is aiming for a December 2018 release.

isis-killer-beheading-video-story-top People have hilarious responses after a painting sold for $450 million
Nov 17, 2017 - 00:35
The auction house hosted public viewings of the painting for more than 27,000 people in cities around the world before the sale. Christie's has exhibited the painting in Hong Kong, San Francisco, London and NY in the weeks prior to Wednesday's sale.

isis-killer-beheading-video-story-top Twitter's new guidelines strip many accounts of their verified 'blue tick' status
Nov 17, 2017 - 00:28
People who post racist and violent content on Twitter will lose their coveted verified blue tick status. Some white nationalists and far-right figures have already had their accounts banned or unverified.

isis-killer-beheading-video-story-top Scientists discover Earth-sized planet that 'could potentially sustain life'
Nov 16, 2017 - 01:42
Those clouds would reflect back to space a large fraction of the incident light, hence preventing too much greenhouse heating. The planet, named Ross 128 b , has a predicted temperature range that could allow liquid water to exist on the surface.

isis-killer-beheading-video-story-top Uber Slapped with Class-Action Lawsuit over Rape, Violence
Nov 16, 2017 - 01:37
The two plaintiffs allege that Uber, in attempting to keep profits high, has not screened or monitored drivers properly. One of the reasons Uber's background checks on drivers are so faulty is keeping costs down, women allege.