Moody’s affirms India’s Sovereign Rating at ‘Baa3’ with Stable Outlook on growth strength

Global rating Moody’s on Monday affirmed India’s long-term local and foreign-currency issuer ratings and the local-currency senior unsecured rating at ‘Baa3’ with a ‘stable’ outlook on the back of robust economic growth and sound external position.

The rating agency also affirmed India’s other short-term local-currency rating at P-3.

“The rating affirmation and stable outlook reflect our view that India’s prevailing credit strengths, including its large, fast-growing economy, sound external position, and stable domestic financing base for ongoing fiscal deficits will be sustained,” it said in a statement.

Key drivers

These strengths lend resilience to adverse external trends, in particular as high US (Aa1 stable) tariffs and other international policy measures hinder India’s capacity