Moody's upgrades India's credit outlook to positive, affirms Baa3 rating
April 09, 2015  09:33
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Ahead of Prime Minister Narendra Modi's Europe visit, Moody's has raised India's credit rating outlook to stable, validating government's reform thrust and fiscal discipline.

Moody's Investors Service changed India's outlook to positive, saying there was an increasing probability that actions by policy makers will enhance the country`s economic strength and, in turn, the sovereign`s financial strength over coming years.

The ratings agency had improved the country's sovereign credit rating outlook from negative to stable in September last year indicating the possibility of a rating upgrade.

Moody's said it expected structural advantages, supported by relatively benign global commodity prices and liquidity conditions, will keep India's growth higher than that of its peers over the rating horizon. 

The ratings agency affirmed India's Baa3 rating.

It said favourable demographics, economic diversity, as well as high savings and investment rates would act as structural advantage for India. 

"Moody's India upgrade validates: government reform thrust, better growth, macro outlook, budget strategy of public investment, fiscal discipline," Chief Economic Advisor Arvind Subramanian tweeted.
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