Moody's rating upgrade a vindication of Modi’s good governance, reform process: Amit Shah

BJP President Amit Shah on Friday hailed India’s bond rating upgradation by Moody’s Investor Services (Moody’s) saying the upgrade was yet another “vindication” of Modi’s good governance.

Amit Shah in a series of tweets said, “India’s largest ever increase in Ease of Doing Business rankings, Pew study ascertaining PM @narendramodi ji’s popularity, Moody’s upgrade are all reflections of Modi Govt’s hard-work and reform process.”

India’s largest ever increase in Ease of Doing Business rankings, Pew study ascertaining PM @narendramodi ji’s popularity, Moody’s upgrade are all reflections of Modi Govt’s hard-work and reform process.

— Amit Shah (@AmitShah) November 17, 2017

Revenue Secretary Hasmukh Adhia also welcomed the upgrade of India's sovereign rating and said the Moody’s has confirmed the "well recognised” path of fiscal reforms chosen by the government.

"The path that the government has chosen for long term reforms and fiscal consolidation is well recognised by investors already. The rating agency too has now confirmed it formally, which is welcome," he tweeted.

The Global rating agency Moody’s Investor Service on Friday upgraded India’s "local and foreign currency issuer ratings" to Baa2 from Baa3 with a stable outlook after 13 years gap.

The agency has also upgraded India’s bond rating from ‘Positive’ to ‘Stable’ saying the reforms by the Union government have helped in reducing the risk of sharp debt increase.

“While India’s high debt burden remains a constraint on the country’s credit profile, Moody’s believes that the reforms put in place have reduced the risk of a sharp increase in debt, even in potential downside scenarios,” Moody’s said in a release.

Moody’s also raised India's long-term foreign-currency bond ceiling to Baa1 from Baa2, and the long-term foreign-currency bank deposit ceiling to Baa2 from Baa3.

However, the short-term foreign-currency bond ceiling remained unchanged at P-2, but the short-term foreign-currency bank deposit ceiling has been raised to P-2 from P-3.

The long-term local currency deposit and bond ceilings remain unchanged at A1, the Moody's said in its release.