International rating agency Moody 's Investors Service has upgraded India 's local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive.The rating agency has revised the sovereign rating of India a notch above investment grade after a long gap of 14 years. Interestingly, the last time the global rating has revised the rating was when the BJP government led by Atal Bihari Vajpayee was in power.Moody's has also upgraded India's local currency senior unsecured rating to Baa2 from Baa3 and its short-term local currency rating to P-2 from P-3, according to a statement from the agency. The short-term foreign-currency bond ceiling remains unchanged at P-2, and the short-term foreign-currency bank deposit ceiling has been raised to P-2 from P-3. The long-term local currency deposit and bond ceilings remain unchanged at A1.The government is mid-way through a wide-ranging program of economic and institutional reforms, it said adding that while a number of important reforms remain at the design phase,"Moody's believes that those implemented to date will advance the government's objective of improving the business climate, enhancing productivity, stimulating foreign and domestic investment, and ultimately fostering strong and sustainable growth. Other important measures which have yet to reach fruition include planned land and labor market reforms, which rely to a great extent on cooperation with and between the States, it added.

Source: Economic Times November 17, 2017 01:59 UTC