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India raises concern over Moody's credit rating 'methodology'

A day before a meeting with top Finance Ministry officials, Moody's  said that India's ratings would be improved depending on the reforms that get implemented.

BT Online        Last Updated: September 22, 2016  | 16:41 IST
India raises concern over Moody's credit rating 'methodology'

The Finance Ministry has expressed concern about the "methodology" used by Moody's after the credit rating agency said it would take 1-2 years for it to improve India's rating.

"We expressed concern about the methodology... reforms in India cannot be doubted...due weightage must be given to these reforms," Economic Affairs Secretary Shaktikanta Das said on Wednesday.

A day before a meeting with top Finance Ministry officials, Moody's  said that India's ratings would be improved depending on the reforms that get implemented.

"We have a positive outlook on India. On balance, the risk is on the upside. We are continuously monitoring the rating. We see pressure building up in 1-2 years and any tangible change could bring about a change in rating," said, Moody's sovereign group senior VP, Marie Diron had said on Tuesday.

The Moody's representatives met Finance Ministry officials on Wednesday during which the government  raised its concern. 

Calling the rating process " deficient", Das said "you (Moody's) cannot jump the gun... reaching a conclusion before your interaction with the Finance Ministry and other ministries".

"Any rating agency is free to arrive at this conclusion, we only expressed concern at the methodology that was followed," Das told reporters.

 

 

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