Moody's upgrade: 'India's growth potential higher than other Baa economies'

William Foster, vice-president of Sovereign Risk Group at Moody's Investors Service says the govt's reform measures contribute to further enhancing the economy's capacity to absorb shocks

Moody’s Investor Services on Friday upgraded India’s sovereign ratings by a notch to Baa2 from Baa3. In order to understand what factors prompted this upgrade, Ishan Bakshi spoke to William Foster, vice-president, Sovereign Risk Group, Moody’s Investors Service. Edited excerpts:

In an interview with Business Standard, Moody’s Senior Vice-President for Sovereign Risk Group Marie Diron had last year said “pressure is building up for a rating upgrade. It could happen in a couple of years, provided reform momentum continues and there is effective implementation.” So what has changed over the past year?

The rating upgrade reflects our expectation that continued