Moody's upgrades India's sovereign bond rating for first time in 14 years

Move to help attract more foreign fund flows; India Inc could tap foreign capital at lower rates

Moody’s Investors Service on Friday upgraded India’s sovereign bond rating by a notch for the first time in 14 years, showing confidence in the Narendra Modi government’s reform initiatives such as demonetisation, the goods and services tax (GST) and its efforts to resolve the bad debt asset crisis of banks.

Moody’s raised the rating from the lowest investment grade of Baa3 to Baa2, and changed the outlook from positive to stable. “It is a belated recognition of the positive steps taken in the past few years. Many who had doubts about India’s reform process would now seriously introspect on their