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Informist, Thursday, Jun. 5, 2025

 

--Source: Moody's to consider India-Pak conflict in India's rtg assessment 
--Source: Moody's has set credit rtg parameters, can't budge from framework 
--Source: Moody's met Indian govt officials as part of regular review meetings

--CONTEXT: Moody's met fin min officials Thu for semi-annual rating review

 

NEW DELHI – Global credit rating agency Moody's Ratings will consider the recent India-Pakistan conflict in its assessment of India's sovereign credit rating, said a source who participated in a meeting between officials of Moody's and the Indian government on Thursday. Moody's has maintained 'Baa3', its lowest investment grade rating, for India for several years, with a stable outlook. 

Indian government officials have expressed displeasure over India's low rating by global agencies at several instances, saying that their assessment framework gives higher weight to unfair parameters. However, Moody's is unlikely to budge from its current framework, the source mentioned above said.  

 

After the Russia-Ukraine war broke out, Moody's downgraded some country's ratings, the source said. "So it is only natural that India-Pakistan conflict would be considered."  

The India-Pakistan conflict had escalated last month as New Delhi struck nine terrorist infrastructure in Pakistan after Pakistan-based terrorist group attacked tourists in Kashmir's Pahalgam. In May, Moody's had cut India's growth forcast for 2025 by 20 basis points to 6.3% and had flagged the conflict as a threat to growth.

Thursday's meeting between the government and Moody's was part of rating reviews that both sides hold regularly, the source said. Moody's is likely to release its report on India's credit rating by September.  End

 

Reported by Krity Ambey

Edited by Tanima Banerjee

 

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