Moody’s India maintains a “BAA3” evaluation with stable expectations due to the growth of strong GDP

Strong economic growth in India and stable external financing helped maintain its credit rating, according to Moody’s World’s Classification Agency. On Monday, Moody’s emphasized the long -term local and external work classifications in India and the unprecedented local classification in BAA3 with “stable” expectations.

Moody also maintained the classification of local currencies in the short term in India in P-3. The Agency’s recent review comes amid recent improvements in India’s financial and economic expectations, following the positive assessments of other global agencies, including the S&P Global Ratings to classify India in August.

“The confirmation of the classification and stable expectations reflects our view that the prevailing credit strengths in India, including its large and rapidly growing economy, the proper external position, and the domestic financing base for the ongoing financial deficit will continue,” Moody’s said in a statement.

He added that these strengths provide flexibility against harmful external trends, such as high definitions in the United States (AA1) and other international policies that can limit India’s ability to attract investments in manufacturing.

At the same time, the agency noticed long -term financial weaknesses. She said, “The growth of strong gross domestic product and gradual financial unification will lead to a very gradual decrease in the government’s high burden on debt, and it will not be sufficient to improve the ability to weak debt, especially as the recent financial measures to enhance special consumption to erode the government revenue base.”

Moody’s also said that the ceiling of local bonds in the long term (LC) in India is still unchanged in the A2, while the roof of the long -term foreign currency bonds (FC) remains in the A3. “The four gap between the LC ceiling and the source classification reflects modest external imbalances as represented by a constant deficit, albeit narrow, and a path, and it is a relatively large government imprint in the economy; and the ability to predict and the reliability of government policies.”

The agency added that the one gap between the LC and FC ceiling, “reflects the low external debt and the low probability of studying debt, especially in the context of the recent steps towards liberalizing the non -resident investment in the portfolio.”