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E-mail ID will not be published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.

EDITORIAL OF THE DAY

  • This is right time for retail investors to enter the debt market

    Quite often, retail investors are ridiculed for entering the equities market in droves, signalling the first signs of a bubble on the Street.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Cost of education must be controlled

In India, we pay very little attention to the cost ...

Zehra Naqvi

What imperfections in nature teach man

Each one of us has faced a time when we ...

Dharmendra Khandal

A wondrous world under the ground

Burrows and dens are safe homes for many kinds of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture