India's Sovereign Rating

Fitch Ratings keeps country at lowest investment grade, citing poor scores in political stability and corruption control

S&P Global upgraded ratings of 10 Indian banks and finance firms, including SBI, HDFC Bank and Tata Capital, a day after raising India's sovereign credit rating to BBB

Moody's Ratings has ruled out an immediate upgrade of India's sovereign rating, despite the government's efforts to manage its finances prudently and the proposal to reduce fiscal deficit to 4.4 per cent of GDP in FY26 in the Budget. "While we view the government's sustained fiscal discipline and narrower fiscal deficits as credit positive, we don't expect these improvements in the debt burden or 'debt affordability' to be enough to trigger a sovereign rating upgrade at this time," Christian de Guzman, Senior Vice President, Moody's Ratings, told PTI in an interview on Saturday. Moody's currently maintains India's sovereign rating at "Baa3" with a stable outlook, which is the lowest investment-grade rating. Finance Minister Nirmala Sitharaman, in her Budget speech, projected the fiscal deficit for FY25 at 4.8 per cent of GDP and 4.4 per cent for FY26. While India is making strides toward fiscal discipline and inflation control, Moody's maintains that for a rating upgrade, a ...

The agency projects a gradual reduction in India's general government debt-to-GDP ratio, from the current 80 per cent to 78 per cent by FY30 and 73.5 per cent by FY35

Global rating agency Fitch on Thursday affirmed India's sovereign rating at 'BBB-' with a stable outlook. India's rating has remained unchanged at 'BBB-', the lowest investment grade, since August 2006. "Fitch Ratings has affirmed India's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook," the global rating agency said in a statement. India's ratings are underpinned by its strong medium-term growth outlook, which will continue to drive improvement in structural aspects of its credit profile, including India's share of GDP in the global economy, as well as its solid external finance position, it said in a statement. Strengthening fiscal credibility from recent achievement of deficit targets, enhanced transparency and buoyant revenues, have increased the likelihood that government debt can follow a modest downward trend in the medium term, it said. Nevertheless, it said, fiscal metrics remain a credit weakness, with deficits, debt and debt servic

S&P said it does not expect recent parliamentary election results to have a major negative impact on the prospects for fiscal improvements in India

Moody's in August had affirmed a 'Baa3' rating on India with a stable outlook. A higher rating implies lower economic risk, allowing a country to borrow at cheaper rates

India's long-term local and foreign-currency issuer ratings and the local-currency senior unsecured rating remains at Baa3, while the other short-term local-currency rating stands at P-3, it said

The Finance Ministry officials will showcase India's strong economic fundamentals and pitch for a sovereign rating upgrade in a meeting with US-based Moody's on June 16. Moody's Investors Service has a 'Baa3' sovereign credit rating on India, with a stable outlook. 'Baa3' is the lowest investment grade rating. Economic Affairs Secretary Ajay Seth, Chief Economic Advisor V Anantha Nageswaran and other senior officials from key ministries would talk about the ongoing economic reforms, government thrust on infrastructure development and forex reserves nearing USD 600 billion, sources said. The government had largely met its fiscal objectives over the past two years. The fiscal deficit, which is the difference between government expenditure and revenue, narrowed to 6.4 per cent of GDP in 2022-23 fiscal, from 6.7 per cent of GDP in 2021-22 fiscal. In the current fiscal, the deficit is budgeted at 5.9 per cent of GDP. As per the fiscal consolidation roadmap, the government intends to br

Fitch Ratings on Tuesday affirmed India's sovereign rating with a stable outlook saying the country has a robust growth outlook and resilient external finances. "Fitch Ratings has affirmed India's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook," it said in a statement, adding strong growth potential is a key supporting factor for the sovereign rating. "India's rating reflects strengths from a robust growth outlook compared with peers and resilient external finances, which have supported India in navigating the large external shocks over the past year," Fitch Ratings said. However, these are offset by India's weak public finances, illustrated by high deficits and debt relative to peers, as well as lagging structural indicators, including World Bank governance indicators and GDP per capita, it added. The agency has kept kept India's credit rating unchanged at 'BBB-' -- the lowest investment grade rating -- since August 2006. Fitch Ratings fore

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Finance Ministry officials and representatives of rating agency Moody's on Tuesday discussed economic growth prospects, during which India pitched for an upgrade in its sovereign rating outlook

The ministry plans to present the economic recovery in the aftermath of the pandemic in support of its demand for rating upgrade

The meeting is scheduled for September 28, according to people familiar with the matter

Govt must take steps to avoid a downgrade

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Should Indian policymakers be concerned about India's existing sovereign rating?

AM Best has downgraded New India's Financial Strength Rating (FSR) to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to BBB+ from A-

India's sovereign rating was downgraded by Moody's to Baa3 with a negative outlook on the pretext of prolonged period of slower growth, rising debt and stress in financial system.