India expects Moody’s to upgrade its sovereign ratings, supported by robust growth outlook and strong macroeconomic indicators.

What Happened? Finance ministry officials met with Moody’s to push for the upgrade, discussing borrowing, disinvestment targets, and state budgets, according to multiple media reports.

However, analysts believe an immediate ratings change is unlikely to result from the meeting.

See Also: SoftBank Looks To Cash In On Paytm, Zomato Rally Via Stake Sale

Moody’s currently maintains India’s sovereign rating at “Baa3” with a “stable” outlook. Baa3 is the lowest rating in the investment grade category.

Moody’s said on Thursday that the emphasis for India’s fiscal strength will be on debt affordability and a projected downward trend in the debt burden, based on stable nominal GDP growth.

Earlier meetings with Fitch and S&P have resulted in no change to India’s ratings, with both agencies maintaining “BBB-” ratings and a “stable” outlook, citing concerns over weak public finances and high deficits.

S&P and Fitch, during their rating review, acknowledged India’s strong growth outlook and external sector resilience compared with peers. However, they also raised concerns about India’s weak public finances, highlighting high deficits, debt levels, and an elevated interest burden.

Read Next: US Chipmaker Closes In On Billion-Dollar Investment In India Plant