Business Standard

All you need to know about Moody's credit rating upgrade for India

The rating upgrade will keep the rupee stronger, and will have a major impact on Bank Nifty, says A K Prabhakar of IDBI Capital

GDP growth
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The trend over the last few quarters suggests there has been a consistent fall in GDP growth

Aprajita Sharma New Delhi
US-based rating agency Moody's on Friday upgraded India's sovereign credit rating by a notch to 'Baa2' from Baa3 and changed the outlook to stable from positive. 

The rating upgrade comes after a gap of 13 years - Moody's had last upgraded India's rating to 'Baa3' in 2004. In 2015, the rating outlook was changed to 'positive' from 'stable'.

The 'Baa3' rating was the lowest investment grade, just a notch above 'junk' status.

Moody's has 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.

Impact on rupee and stock market

G Chokkalingam, Founder

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