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Moody’s follows Fitch, only affirms India’s sovereign rating with stable outlook
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The Indian Express
The third major global rating agency, Moody’s Ratings, on Monday affirmed its Baa3 rating on India and retained the outlook at stable, one month after Fitch Ratings also maintained the sovereign rating at the lowest investment-grade level.
“The rating affirmation and stable outlook reflect our view that India’s prevailing credit strengths, including its large, fast-growing economy, sound external position and stable domestic financing base for ongoing fiscal deficits will be sustained.
The Economic Survey for 2020-21 even had a chapter titled ‘Does India’s Sovereign Credit Rating reflect its fundamentals No!’.
However, states do not have a debt target and rating agencies view government debt on a consolidated basis – Centre plus states.
Like S&P and Fitch, Moody’s too sees the impact on India’s growth from the US’ high tariffs to have only “limited negative effects” in the near term.