Global ratings agency Moody's Investors Service on Tuesday changed India's ratings outlook to stable from negative.
(Photo: IANS)
Global ratings agency Moody's Investors Service on Tuesday changed India's ratings outlook to stable from negative.
Accordingly, Moody's affirmed the country's foreign currency and local currency long-term issuer ratings and the local currency senior unsecured rating at Baa3.
Moody's also affirmed India's other short-term local currency rating at P-3.
"With higher capital cushions and greater liquidity, banks and non-bank financial institutions pose much lesser risk to the sovereign than Moody's previously anticipated."
Besides, it pointed out that risks stemming from a high debt burden and weak debt affordability remain.
Furthermore, Moody's expects that the economic environment will allow for a gradual reduction of the general government fiscal deficit over the next few years, preventing further deterioration of the sovereign credit profile.
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