India’s Credit Rating

Prospects & Challenges

Moody’s which is one among the top global credit rating agencies, recently upgraded India sovereign issue rating to Baa2 from Baa3 with a stable outlook.

What is Sovereign Rating?

• Credit rating agencies provide ratings to individuals and companies on their ability to repay debt and rank them accordingly.
• Global credit rating agencies assign these ratings to countries, which are termed as their sovereign bond ratings.
• Governments of countries earn income by way of tax collections, cess, profits from State enterprises and other many ways and spend on public welfare, subsidies, salaries and other administrative tasks ....