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Govt's borrowing cut will not affect India’s sovereign rating: Moody’s
Jan-19-2018

A day after government decided to lower its additional borrowing from Rs 50,000 crore to Rs 20,000 crore, global credit rating agency, Moody's Investors Service’s Vice President Marie Diron has said that the move will not have impact on India's sovereign rating of Baa2 that they have upgraded recently with a stable outlook.

Further, noting that restructuring of the borrowing is a relatively small amount with respect to the size of India's economy, Diron said that a change in borrowing adjustments from one year to the other will also not have impact on its overall cost of debt in the long run, due to the country’s long maturity time debt frame.  Vice President is also not expecting any impact of the borrowing cut over the fiscal deficit target estimate.

Moody’s Vice President further listed benefits of the governments’ significant move of GST implementation in the country and described it as revenue neutral. She said simplified tax system will lead to greater compliance and greater productivity and this will result into revenue accretion, although the rating agency is not expecting an immediate impact of the GST move in the next fiscal year.


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