MOODY’S CHANGE RATING: BUT A LONG DUE, WHAT IS NEXT?

Abstract

Any decision of the government does widely affect an economy because these decisions are affecting the sentiments of a local investor as well as a foreign investor. The economic and structural reforms to boost the growth of the country were taken by the Indian government from last many years. This is the result of institutionalized reforms, that MOODY’S INVESTOR SERVICE upgrades the rating of Indian sovereign bond from Baa3 to Baa2. MOODY'S also changed the outlook of the Indian economy from positive to stable. The rating agency doesn’t upgrade rating of any economy merely some step those are beneficial for a nation in short-term, but rating agency keeps in mind such measure of government that will benefit the economy for a long time. Last time Moody’s upgrade Indian rating in 2004. The current upgrade comes after 13 years. So, it is a long overdue. This research paper is based on a conceptual study. Secondary data is used in this paper and the data is collected from newspapers, magazines, and internet. In this research paper, I investigate, why Moody’s take a long time? And what is next step for the government to maintain or further upgrade the rating of India?