Moody’s said there was increasing probability that actions by policy makers will enhance the country’s economic strength and sovereign’s financial strength over coming years.
Rating agency Moody’s has affirmed India’s sovereign rating at BAA3, but raised the rating outlook to ‘positive’ from ‘stable’. However it cautioned that unless the country’s banking system problem were resolved, its credit profile would remain stretched. Moody’s view is that India’s policymakers are establishing a framework that will likely allow India’s growth to continue to outperform that of its peers over medium term and improve India’s macro economic, infra and institutional profile.