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By Nikunj Ohri
NEW DELHI (Reuters) -India questioned the rating parameters of Moody’s Investors Service at a meeting in New Delhi on Friday, according to a government source, as the country seeks an upgrade from the global ratings agency.
Moody’s rates India at the lowest investment grade of “Baa3” with a “stable” outlook, similar to those assigned by S&P and Fitch at ‘BBB-‘.
Global ratings agencies take into account parameters such as the economic growth rate, inflation, general government debt and short-term external debt as a percentage of GDP, and political stability as some of the key considerations.
“We have questioned them … how can Indonesia have a better rating than India,” an Indian government official, who did not want to be named, told reporters after attending the meeting held between Moody’s executives and finance ministry officials in New Delhi.
Moody’s rates Indonesia’s sovereign credit rating at Baa2, a notch above India.
Earlier this year, India met all three global rating agencies and pitched for an upgrade, saying its economic metrics have improved considerably since the pandemic.
India’s growth in the last fiscal year ended on March 31 was 7.2%, one of the highest among big economies, while it aims to cut its fiscal deficit to 5.9% of gross domestic product by the end of the current fiscal year.
The Asian economy expects to grow between 6% and 6.8% in the current fiscal year, according to the government.
The finance ministry and Moody’s did not immediately respond to e-mails seeking comment.
(Reporting by Nikunj Ohri;Editing by Andrew Cawthorne)
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