Moody's retains India rating at 'Baa3', maintains stable outlook

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....oody's retains India rating at 'Baa3', maintains stable outlook<BR>PTI News<BR>Dated:- 29-9-2025<BR>PTI<BR>New Delhi, Sep 29 (PTI) Moody's Ratings on Monday affirmed India's long-term local and foreign-currency issuer ratings and the local-currency senior unsecured rating at Baa3 with a 'Stable' outlook on the back of robust economic growth and sound external position. The global rating agency a....

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....lso affirmed India's other short-term local-currency rating at P-3. "The rating affirmation and stable outlook reflect our view that India's prevailing credit strengths, including its large, fast-growing economy, sound external position, and stable domestic financing base for ongoing fiscal deficits will be sustained," it said in a statement. These strengths lend resilience to adverse external....

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.... trends, in particular as high US (Aa1 stable) tariffs and other international policy measures hinder India's capacity to attract manufacturing investment, it said. India's credit strength is balanced by long-standing weaknesses on the fiscal side, which will remain, it said. Strong GDP growth and gradual fiscal consolidation will lead to only a very gradual decline in the government's high de....

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....bt burden, and will not be sufficient to materially improve weak debt affordability, especially as recent fiscal measures to reinforce private consumption erode the government's revenue base, it said. India's long-term local-currency (LC) bond ceiling remains unchanged at A2 and its long-term foreign-currency (FC) bond ceiling remains unchanged at A3, it said. "The four-notch gap between the L....

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....C ceiling and issuer rating reflects modest external imbalances as represented by persistent, albeit narrow, current account deficits; a relatively large government footprint in the economy; and moderate predictability and reliability of government policies," it said. The one-notch gap between the LC and FC ceiling reflects limited external indebtedness and the low likelihood of a debt moratoriu....

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....m, especially in the context of recent steps towards liberalisation of non-resident portfolio investment, it said. On August 14, S&P Global Ratings upgraded India's sovereign rating by a notch to 'BBB', from 'BBB-', with a stable outlook — its first upgrade for India in over 18 years. PTI JD DP DP SHW<BR> News - Press release - PIB....