Moody & #39;S Remains & #39;Positive & #39; On India

Wall Street rating giant Moody's said here today that India continued to enjoy a 'positive outlook' as far as its sovereign rating was concerned.

David Moniz, managing director for global ratings and research, Moody's, said the "sovereign rating indicated a medium to long term view of the economy and political factors and there was no reason to disturb the position now though normal monitoring would continue."

Moody's was confident that India would emerge as one of the most robust emerging markets in the world and it was shaping up in line with expectations, Moniz said ahead of a seminar to launch a corporate governance rating (CGR) product with its Indian associate Icra Ltd. "Moody's is optimistic about the country and would like to strengthen its position and presence in the domestic market through Icra," he added.

While refusing to comment on the specifics of increasing Moody's holding of 11 per cent in Icra's paid-up equity, Moniz said the company would explore every opportunity to play a greater role in the domestic market, be it through the equity route or other forms of enhanced collaboration.

A joint brand-building exercise for high end products and services could be one of the platforms for greater co-operation, Icra chairman D N Ghosh commented. "Icra's rating personnel are among the best in the world and there should be no problem in scaling up the nature of co-operation and exchanges between the two companies," he said.

Responding to questions on possible developments in the Indian market, Moniz and Moody's senior vice-president for global products development Priscilla Hancock indicated that sub-sovereign ratings for Indian states may emerge as a business once the states decide to raise cross-border funds for development, having been cut off from central support. "I would say even at the risk of sounding immodest that without a Moody's rating, cross-border investors would be averse to putting funds into Indian states," said Moniz.