No immediate upgrade of India's sovereign rating: Moody's after Budget 2025
Moody's Ratings has ruled out an immediate upgrade of India's sovereign rating, despite the government's efforts to manage its finances prudently and the proposal to reduce fiscal deficit to 4.4 per cent of GDP in FY26 in the Budget. "While we view the government's sustained fiscal discipline and narrower fiscal deficits as credit positive, we don't expect these improvements in the debt burden or 'debt affordability' to be enough to trigger a sovereign rating upgrade at this time," Christian de Guzman, Senior Vice President, Moody's Ratings, told PTI in an interview on Saturday. Moody's currently maintains India's sovereign rating at "Baa3" with a stable outlook, which is the lowest investment-grade rating. Finance Minister Nirmala Sitharaman, in her Budget speech, projected the fiscal deficit for FY25 at 4.8 per cent of GDP and 4.4 per cent for FY26. While India is making strides toward fiscal discipline and inflation control, Moody's maintains that for a rating upgrade, a ...
Moody's Ratings has ruled out an immediate upgrade of India's sovereign rating, despite the government's efforts to manage its finances prudently and the proposal to reduce fiscal deficit to 4.4 per cent of GDP in FY26 in the Budget.
"While we view the government's sustained fiscal discipline and narrower fiscal deficits as credit positive, we don't expect these improvements in the debt burden or 'debt affordability' to be enough to trigger a sovereign rating upgrade at this time," Christian de Guzman, Senior Vice President, Moody's Ratings, told PTI in an interview on Saturday.
Moody's currently maintains India's sovereign rating at "Baa3" with a stable outlook, which is the lowest investment-grade rating.
Finance Minister Nirmala Sitharaman, in her Budget speech, projected the fiscal deficit for FY25 at 4.8 per cent of GDP and 4.4 per cent for FY26.
While India is making strides toward fiscal discipline and inflation control, Moody's maintains that for a rating upgrade, a ...
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