New Delhi, 9 May (IANS). Global Sovaren Credit Rating Agency Morningstar DBRS has upgraded India’s long -term foreign and local currency issuing ratings to BBB with a stable trend from BBB (Low).
This upgrade reflects India’s economic reform and strong growth rate.
India’s short-term foreign and local currency issuer ratings have also been increased from R-2 (medium) to R-2 (high) with a stable trend.
India’s structural improvement through infrastructure investment and digitization for this upgrade is the main factor, under which fiscal consolidation (loan and deficit reduction) and ‘comprehensive economic stability’ were made facilitated with ‘continuous high growth’.
Comprehensive economic stability has been seen with stable inflation, limited exchange rates and strong external balance. At the same time, continuous high growth has been observed with an estimate of an average GDP growth during FY 2022-25.
The Finance Ministry on Friday issued a statement informing India’s long -term foreign and local currency issuing ratings.
The high capital adequacy ratio and a strong banking system with a strong banking banks with low non -performing loans of 13 years was another important driver for upgrade.
According to the report, if India continues to implement the implementation of investment rate -raising reforms, the credit rating can be further improved, which will increase the growth possibilities of the moderate period.
The report also states that despite the current public date level, the risk for date sustainability due to local currency price class and long maturity structures is limited. In addition, a decrease in public date ratio compared to continuous improvement and GDP can further improve.
The rating scale for Morningstar DBRS is similar to fitch and S&P rating parameters. Morningstar uses ‘high’ and ‘low’ for DBRS rating.
-IANS
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