Industry Odisha Bureau, May 5: US-based Moody’s Ratings today (May 4) reportedly rated India one among the large economies that has efficiently withstood the onslaught of recurrent global shocks, but has not lost ability of market-access in the last five years.
Stating that: “Relatively accommodative external market conditions in the wake of recent shocks helped emerging markets absorb successive external shocks since 2020”, the latest report by Moody’s Ratings added, “Countries like India (Baa3 stable) show the most resilience across a range of market indicators”.
Notably, “Moody’s rating ‘Baa3 Stable’ signifies the lowest tier of investment-grade credit, indicating moderate credit risk. It is considered safe (not junk), with a ‘stable’ outlook indicating that the rating is unlikely to change in the near term. This rating reflects strong economic growth prospects, high debt, and resilience to external shocks”.
The report of the US-headquartered ratings agency has also stated, “India and Thailand (Baa1 Stable) are well placed to manage future shocks because monetary policy frameworks are clear and predictable, inflation expectations are well anchored, and exchange rates can adjust when needed”.
In the afore-said context, “Moody’s rating ‘Baa1 Stable’ indicates an investment-grade, medium-grade obligation with moderate credit risk. The ‘Baa1’ rating signifies it is in the upper tier of the Baa category, and the ‘Stable’ outlook suggests the rating is unlikely to change over the medium term. It is used for corporate or sovereign debt that is considered stable, reliable, and not likely to default, though it may have some speculative characteristics”.
Besides highlighting: “Malaysia, India, Thailand, Indonesia, and Mexico have consistently shown market resilience”, the fresh report of Moody’s Ratings has also summed up: “These countries showed durable resilience across market indicators, where shocks are absorbed through prices rather than financing constraints”.
