Moody's said Tata Motor's two-notch rating upgrade with a positive outlook follows the company's sustained track record in achieving revenue growth, improving profitability and reducing debt.
The rating company also changed Qatar's outlook from positive to stable, meaning another upgrade is unlikely in the short term
Morgan Stanley Research's report said the GDP growth for the quarter ended June came higher than its expectations
The Moody's affirmation is driven by Indiabulls' strong capital, comfortable liquidity, declining profitability and weak asset quality
FinMin said that Moody's Investors Service upgraded India's local and foreign currency issuer ratings after a gap of 13 years
Offshore dollar borrowing by Indian companies has already risen 32 per cent from the start of 2017 to $8.81 billion
Moody's upgrade to help firms lower interest costs: Experts
Moody's expects India's growth rate to improve from 6.7% in 2017-18 to 7.5% in 2018-19 and to stay at that level thereafter
Moody's upgrades India's sovereign bond rating for first time in 14 years
Govt deserves credit, must stay the reforms course
By upgrading so close to the business end of India's poll cycle, Moody's has made it tough for the NDA to abandon fiscal restraint
BJP is confident of registering emphatic wins in Himachal Pradesh and Gujarat Assembly elections: Piyush Goyal
Reforms such as the GST, the rationalisation of government schemes and better-targeted delivery are expected to improve India's fiscal position: Moody's
William Foster, vice-president of Sovereign Risk Group at Moody's Investors Service says the govt's reform measures contribute to further enhancing the economy's capacity to absorb shocks
This is clearly an affirmation of the structural reforms the government is undertaking
For all concerns regarding debt and fiscal, we are going to see a clearer picture in the coming months: Arvind Subramanian
Moody's upgrade of India's sovereign ratings is likely to boost inflows from foreign portfolio investors (FPIs) into Indian equities, albeit marginally. The demand for Indian bonds, however, will surge even as existing FPI investors in the debt market benefit from softer yields going forward.Foreign portfolio investors (FPIs) have pumped in more than $22 billion into the debt market this year compared with $8 billion into equities. Countries such as Taiwan, Mexico, South Korea and China have got a higher share of equity inflows from FPIs than India."Indian bonds have remained attractive this year owing to the high nominal yield, approaching 7 per cent sovereign yield, and the rupee appreciation of 6-7 per cent against the dollar. Both these factors amount to a significant appreciation in bond values. Add to this the Moody's rating upgrade, the demand for India debt will only increase going further. Existing debt investors also stand to benefit from the softening of the yields," said ..
Ratings are not the last word on anything - sometimes they are unfair, at other times they flatter to deceive
India's rating upgrade still retains its credit risk as moderate and obliges it to remain fiscally prudent, usher in more reforms and be wary of external shocks
Business Standard takes a look at rating grades Moody's has assigned India over the years