more-inThe rating upgrade by Moody’s will help Indian corporates to reduce their borrowing costs in the medium term as it will lower the risk premium for the companies. The rating upgrade comes after a gap of almost 14 years, which many economists said was long overdue. HPCL said the firm would benefit from both lower borrowing costs and a stronger rupee. “The ratings upgrade will definitely help in reducing our borrowing costs on one hand and the stronger rupee. However, an immediate reduction in borrowing costs may not be significant as Indian papers are trading one notch above the sovereign rating, as investors had already factored in a rating upgrade.

Source: The Hindu November 17, 2017 16:52 UTC