Question

Moody’s Investors Service has upgraded India’s sovereign ratings from its lowest investment grade “Baa3” to ____?

• A. AA-
• B. A+
• C. Baa2
• D. Baa1
• E. None of the above

Answer 1

The correct option is C Baa2

International rating agency Moody’s Investors Service has recently upgraded the Government of India (GoI)’s local and foreign currency issuer ratings to Baa2 from its lowest investment grade (Baa3) and changed the outlook on the rating to stable from positive. Moody’s has also upgraded India’s local currency senior unsecured rating to Baa2 from Baa3 and its short-term local currency rating to P-2 from P-3. The decision to upgrade the ratings is underpinned by Moody’s expectation that continued progress on economic and institutional reforms will enhance India’s high growth potential.