Full text: Moody's answers questions on why India deserved a rating upgrade

A week after upgrading India's sovereign rating to Baa2 from Baa3, rating agency Moody's has released a new report explaining the drivers behind the upgrade and addresses a number of questions pertinent to the sovereign rating, as well as the implications of the upgrade for banks and non-financial corporates in India.

The report seeks to answer questions such as the drivers of the upgrade, the reason for the upgrade amid the current economic slowdown,  how does the recently announced bank recapitalization plan help Indian banks and so on.  Moody's expects India's continued progress on economic and institutional reforms will, over time, enhance India's high growth potential.

"The recent reforms offer greater confidence that the high level of public indebtedness, one of India's principal credit weaknesses, will remain stable, even in the event of shocks, and will ultimately decline," says William Foster,  Moody's Vice President and Senior Credit Officer. 

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