Moody's upgrades India's rating; backs reforms like demonetisation, GST

The rating agency has also changed its outlook on India rating from positive to stable, a move that will help India attract more foreign fund flows and corporates tap debt at lower rates abroad

Moody's Investors Services on Friday upgraded India’s sovereign ratings from the lowest investment grade to a notch higher, in a vote of confidence in the Narendra Modi-led central government’s decisions on demonetisation, introduction of the goods and services tax (GST) and measures to resolve banks’ bad asset issue, among other reforms.

Also, in a move that will help India in attracting more foreign fund flows and corporates in tapping debt at lower rates abroad, the agency changed its outlook on India’s rating to stable from positive.

In technical terms, the government's local and foreign currency issuer ratings have been scaled