New Delhi, Nov. 14: The government today told Moodys that Indias sovereign rating should move up in the Baa scale as the countrys credit strength is better than most Baa-rated nations.
Moodys currently rates the governments 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 Moodys 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.
Moodys 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 Moodys 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 Indias sovereign credit rating is at par with Baa1 category nations, two notches above the current ratios by Moodys. 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.