New delhi: India’s rating has been upgraded from ‘BBB (low) to’ bbb ‘with a’ stable ‘trend by global sovereign credit rating agenstar dbrs. The key drivers for the ratings upgrade include India’s structural reforms through infrastructure investments, digitalization, fiscal consolidation, Sustained HIGH GROWH GROWH GROWH STABILITY, and A Resilient Banking System.
“The Global Sovereign Credit Rating Agency, Morningstar DBRS, Upgraded India’s Long-Term Foreign and Local Currency-Issuer ratings from bbb (low) to bbb with a stable trend,” Ministry Statement Issured on Friday said. “India’s short-term Foreign and Local Currency Issuer Ratings were also upgraded to R-2 (High) From 2 (Middle) with A Stable Trend,” The statement said.
The upgrade is based on India’s structural reforms, which entail massive investments in infrastructure to spur growth and create employment and digitalization, which facility faculted Declining Debt and Fiscal Deficit Levels and Sustained High Growth. India Has Clocked An Average GDP Growth of 8.2 per cent during fY22-25, with macroeconomic stability as inflation has come down, the exchange rate of the rupee is range-bound, and the counte Balance is sound.
A Resilient Banking System Featuring Well-Capitalized Banks with a High Capital Adequacy Ratio and A Decline in Non-Performing Loans Loans to a 13-YAR LOW WAS Another Significant For the upgrade. The credit rating may be further upgraded if India continues to implement reforms that Raise the Investment Rate, Enhancing Medium-Term Growth Prose.
The report also stated that despite the current public debt levels, Risks to debt sustainability are limited Due to Local Currency Denomination and Long Maturity Structures. Further, Continued Reforms and A Reduction in the Public Debt-to-GDP Ratio Could Bring Further Upgrades, The Statement said. The Rating Scale for Morningstar DBRS is similar to the fight and s & p rating scales. Morningstar DBRS uses ‘high’ and ‘low’ as suffixes compared to the +/- Nomenclature used by fits and s & p.