Saturday, November 23, 2024
spot_img

Moody’s retains India’s sovereign credit ratings

Date:

Share post:

spot_img
spot_img

Mumbai, Sep 6: The impact of the Russia-Ukraine conflict, higher inflation and tightening global financial conditions on the back of policy tightening, is unlikely to derail India’s ongoing recovery from the pandemic in 2022 and 2023, Moody’s said in a release on Tuesday.

As per the release, India’s sovereign ratings has been retained by Moody’s at Baa3 with a stable outlook.

“The stable outlook reflects our view that the risks from negative feedback between the economy and financial system are receding.

“With higher capital buffers and greater liquidity, banks and nonbank financial institutions (NBFIs) pose much less risk to the sovereign than we previously anticipated, facilitating the ongoing recovery from the pandemic. While risks stemming from a high debt burden and weak debt affordability remain, we expect that the economic environment will allow for a gradual narrowing in the general government fiscal deficit over the next few years, avoiding further deterioration in the sovereign credit profile,” the release said.

The release also said that the ratings agency could upgrade the rating if India’s economic growth potential increased materially beyond their expectations, supported by the effective implementation of economic and financial sector reforms that led to a significant and sustained pickup in the private sector investment.

“Effective implementation of fiscal policy measures that resulted in a sustained decline in the government’s debt burden and improvements in debt affordability would also support the credit profile,” release added.

IANS

spot_img
spot_img

Related articles

Not a wave, but a tsunami: Uddhav Thackeray on Maha results

Mumbai, Nov 23:  Dazed by the debacle in the Maharashtra Assembly elections, Shiv Sena (UBT) President and former...

125th Seng Kut Snem observed today.

Jowai, Nov 23: The annual festival that honours the Seng Khasi movement, which was established to preserve and...

Adani Group’s 11 public firms not subject to any US indictment: Group CFO

New Delhi, Nov 23:  Adani Group Chief Financial Officer (CFO) Jugeshinder Singh on Saturday addressed the ongoing controversy...

Karnataka bypolls: Congress registers thumping victory in all 3 Assembly seats

Bengaluru, Nov 23: Karnataka's ruling Congress on Saturday won all three seats in the crucial by-elections, retaining the...