Moody's Maintains India's Stable Credit Ratings Amid Economic Growth

Moody's Ratings on Monday confirmed India's credit ratings, maintaining a 'Stable' outlook due to the country's robust economic growth and strong external position. The global agency affirmed the long-term local and foreign-currency issuer ratings at Baa3 and set the local-currency senior unsecured rating similarly, reflecting India's economic resilience.

This rating decision balances India's enduring fiscal challenges, which continue to hinder significant improvements in debt affordability, against its expanding GDP and steady fiscal consolidation. Nevertheless, the government's recent fiscal measures focusing on boosting private consumption are seen as eroding the revenue base.

Moody's also maintained India's long-term local-currency bond ceiling at A2 and the foreign-currency bond ceiling at A3, identifying modest external imbalances. The agency cited limited external indebtedness and recent liberalisation steps in non-resident portfolio investment, reducing the likelihood of a debt moratorium.

(With inputs from agencies.)