Moody's upgrades India's credit outlook to positive, affirms Baa3 ratingZee Media Bureau

Apr 9 : Ahead of Prime Minister Narendra Modi's Europe visit, Moody's has raised India's credit rating outlook to stable, validating government's reform thrust and fiscal discipline.

The ratings agency had improved the country's sovereign credit rating outlook from negative to stable in September last year indicating the possibility of a rating upgrade.

Moody's Investors Service changed India's outlook to positive, saying there was an increasing probability that actions by policy makers will enhance the country`s economic strength and, in turn, the sovereign`s financial strength over coming years.

Moody's said it expected structural advantages, supported by relatively benign global commodity prices and liquidity conditions, will keep India's growth higher than that of its peers over the rating horizon.

The ratings agency affirmed India`s Baa3 rating.

The revision in outlook comes ahead of the Prime Minister's high profile visit to the Europe, which is aimed at procuring investments, among other things.