Moody ups India’s rating |Rupee appreciation by 69 paise against USD | Sensex climbs 400 points
Posted [relativedate] at [relativetime time_format=”H:i”]
International rating firm Moody upgraded India’s credit rating to Baa2. This is the first time since 2004 that Moody upgraded India’s credit rating. The credit rating represents the worth of Government Bonds and Corporate Bonds on a nation.
The given rating indicates that the nation has enough capacity to meet its financial commitments and requirements. On the same lines, it also raises that the country might fail to meet its financial commitments given adverse economic and political conditions.
After Moody upgraded India’s credit rating, the Sensex and the Stock Markets climbed, while the Rupee was appreciated against the US Dollar.
The BSE (Bombay Stock Exchange) climbed 414 points, while the Rupee registered an appreciation of 69 paise against the US Dollar.
India was stuck with the Baa3 credit rating by Moody from 2004. The Baa3 credit rating of a nation meant that it is risky for foreign investors to invest by buying Corporate and Government Bonds.
Moody also forecasted that India’s credit rating will gain momentum as GST and other financial reforms will reap benefits in the coming few years.