New Delhi, Nov. 14: The government today told Moody’s that India’s sovereign rating should move up in the Baa scale as the country’s credit strength is better than most Baa-rated nations.

Moody’s currently rates the government’s foreign currency bonds at Baa3 with a stable outlook and the domestic currency debt at Ba1 with a positive outlook.

A note prepared by the finance ministry for a meeting with Moody’s officials highlighted that India had taken “bold fuel hikes, especially in kerosene and diesel, decontrolled petrol prices, besides getting its committee of secretaries to clear 51 per cent FDI in multi-brand retail”.

Moody’s officials were in the capital to hold a meeting with the representatives of the finance ministry before evaluating Indian government bonds.

Last week, the credit rating agency had downgraded Indian banks amidst a flurry of protests.

The banks have sought a review, contending that their intrinsic strength was far higher than the banks in the West. Finance ministry officials said they too were “encouraging Moody’s to revisit its rating for Indian banks”.

Top finance ministry officials said, “We pointed out to them that the latest global competitiveness report for 2011-12 issued by the World Economic Forum indicated that India’s sovereign credit rating is at par with Baa1 category nations, two notches above the current ratios by Moody’s. We are encouraging them to reassess us and take a fresh look at our long-term credit strengths and take a long overdue credit rating upgrade.”