Decisive election result credit positive for India: Moody's

Tags: News
The landslide victory of BJP-led NDA in the elections is credit positive for India as a stable central government is expected to address the country's economic challenges, a Moody's report said today.

"Moody's believes that the new government's strong mandate increases the possibility of a stable central government that will pursue a shared economic agenda to address India's macroeconomic challenges," said the report -- 'India's decisive election outcome is credit positive'.

Moody's has assigned a 'Baa3' rating to India, signifying moderate credit risk, with a stable outlook.

In the recently concluded elections, the BJP-led NDA scored an overwhelming majority of 334 seats, in the 543-member Lok Sabha.

The landslide victory is credit positive for both India's sovereign profile and corporate sector, while the effects for its banks are currently limited, it said.

The credit profiles of public-sector banks, however, may experience positive effects from 2015, Moody's Investors Service added.

It said the election results will have the immediate effect of sustaining investor sentiment, which has also recently boosted India's equity indices and the rupee.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • To die with dignity is an inalienable part of right to life

    The death of Aruna Shanbaug this week has again brought the long-standing euthanasia debate to life.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

China looks to India for balance

Almost a third of the total world population lives in ...

Zehra Naqvi

Love and its stories

People must have bread. They can live without stories. No, Hameeda, ...

Dharmendra Khandal

Tiger in urban landscape

Ranthambhore is in a no-win situation. Just a few days ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture