Rating upgrade recognises India's changing face: Prasad
New Delhi: Union Law and IT Minister Ravi Shankar Prasad today said Moody's credit rating upgrade of India is a recognition of the changing face of the country underscored by good governance, transparent decision-making and pro-investment policies.
The US-based Moody's today upgraded India's sovereign credit rating by a notch to 'Baa2' with a stable outlook citing improved growth prospects driven by economic and institutional reforms.
"This revision of sovereign rating of India is recognition of changing face of India, of good governance, investment, decision-making fairness, pro-investment and pro- growth policies... most importantly, a governance of integrity and honesty," Prasad told reporters here.
Terming the rating upgrade as a matter of "great honour and assurance", the minister said it also underlined India's prowess in digital governance and digital technology.
Moody's had last upgraded India's rating to 'Baa3' in 2004, and this latest rating upgrade comes after a gap of 13 years.
Sovereign rating is a barometer of the country's investment climate. It gives investors an insight into the level of risks -- including political -- associated with investing in a particular country.
In a statement, Moodys had said: "The decision to upgrade the ratings is underpinned by Moody's expectation that continued progress on economic and institutional reforms will, over time, enhance India's high growth potential and its large and stable financing base for government debt and will likely contribute to a gradual decline in the general government debt burden over the medium term.