India now firmly investment grade: Twitter reacts to Moody's credit rating upgrade

The US-based Moody's today upgraded India's sovereign credit rating by a notch to 'Baa2' with a stable outlook citing improved growth prospects driven by economic and institutional reforms.

The rating upgrade comes after a gap of 13 years - Moody's had last upgraded India's rating to 'Baa3' in 2004.

In 2015, the rating outlook was changed to 'positive' from 'stable'.

The 'Baa3' rating was the lowest investment grade -- just a notch above 'junk' status.

"The decision to upgrade the ratings is underpinned by Moody's expectation that continued progress on economic and institutional reforms will, over time, enhance India's high growth potential and its large and stable financing base for government debt and will likely contribute to a gradual decline in the general government debt burden over the medium term," Moody s said in a statement.

Sovereign rating is a barometer of the country's investment climate. It gives investors insight into the level of risks associated with investing in a particular country and also includes political risks.

For long, India was rated by other rating agencies at Baa3, the lowest investment grade and just a notch above the junk grade, which has now been upgraded a notch higher by Moody's.

The Narendra Modi government has been pitching for an upgrade for quite some time now citing various reforms initiatives.

The upgrade comes days after India climbed 30 places to rank 100th on the World Bank's Doing Business Report. The stock market and the rupee reacted positively with a sharp rally today.

The global ratings agency, however, cautioned that high debt burden remains a constraint on the country's credit profile.

"Moody's believes that the reforms put in place have reduced the risk of a sharp increase in debt, even in potential downside scenarios," it said.

Moody's Investors Service upgraded the Government of India's local and foreign currency issuer ratings to 'Baa2' from 'Baa3' and changed the outlook on the rating to stable from positive, the statement said.

Stating that reforms will foster sustainable growth prospects, the US-based agency said the government is mid-way through a wide-ranging programme of economic and institutional reforms.

"While a number of important reforms remain at the design phase, Moody's believes that those implemented to-date will advance the government's objective of improving the business climate, enhancing productivity, stimulating foreign and domestic investment, and ultimately fostering strong and sustainable growth," Moody s said.

Here's how Twitter reacted:

Even more important, it's great news for India! You don't have to agree with all that this govt does, but I'd watched with dismay (& also got trolled for recognising some of the +ve steps) as many ppl dissed *everything* about it. We Indians deserve more rational discourse... https://t.co/jGgxMrBwSi

— Baijayant Jay Panda (@PandaJay) November 17, 2017

Congratulations to India for the #Moody 's credit rating upgrade. India now firmly investment grade.

— Chetan Bhagat (@chetan_bhagat) November 17, 2017

US-based ratings agency Moody’s Investors Service upgraded India’s sovereign rating to Baa2 from Baa3

So basically #Moody is also a Modi Bhakt!! #Moodys

— Rubika Liyaquat (@RubikaLiyaquat) November 17, 2017

Recognising India's growth enhancing reforms under PM @narendramodi, Moody’s has upgraded India’s sovereign rating for the first time since 2004. Entire world is recognising "Sabka Saath, Sabka Vikas".

— Piyush Goyal (@PiyushGoyal) November 17, 2017

Pidi- Why are u looking sad?
Pappu- Aaj toh Moody kharab ho gaya mera:(

— one tip one hand_ (@OneTipOneHand_) November 17, 2017

#Moody's upgrade is a recognition of all the structural reforms in the Indian Economy in the past few years.

— Arun Jaitley (@arunjaitley) November 17, 2017

Same folks who hype up negative news on the economy are quick to find lacunae when any positive news emerges on the economy. Unebelievably high levels of hypocrisy. They want the glass to always be empty.

— Rahul Kanwal (@rahulkanwal) November 17, 2017

We should celebrate Moody's upgrade by holding a midnight ceremony in Central Hall of Parliament and damn Standard and Poor.

— Yashwant Sinha (@YashwantSinha) November 17, 2017

News: 14 years after last uptick, Moody's upgrades India's economy.
Windbag opedist: Rubbish, I write in WSJ.
Dolt economist: Where's the data?
TV anchor: Took Uber, driver in bad mood.
Pappu: Pidi's response to Moody's - LMAO.
MSM: OMG! Breaking Now - Pidi laughed his ass off. https://t.co/lY0CDLfLRt

— Kanchan Gupta (@KanchanGupta) November 17, 2017

I truly believe in Yashwant Sinha, Arun Shourie, Manmohan Singh, Rahul Gandhi and other such eminent economists' claim that India's economy has gone to the dogs. #Moody has an agenda. Perhaps he wants to become coach of Indian team.

— Sreemoy Talukdar (@sreemoytalukdar) November 17, 2017

It's a heartburn moment for @Narendramodi's detractors as after World bank report & PEW survey ,Rating Agency #Moody's upgrades India's rating after 13 years - thanks to bold reforms pic.twitter.com/6355MJ1Gyl

— Dr. Harsh Vardhan (@drharshvardhan) November 17, 2017

#IndiaUpgrade by #Moody is a recognition of series of reforms undertaken by the Government under the leadership of Hon.PM @narendramodi ji.This comes amidst slew of global recognitions: #EaseOfDoingBusiness ranking,Pew report

— Suresh Prabhu (@sureshpprabhu) November 17, 2017

Yay. #Moody upgrades India's rating to Baa2.
Or, as Ramdev would say, BaaBaa.

— Ramesh Srivats (@rameshsrivats) November 17, 2017

Pic 1: Pseudo Liberals/ Pseudo Economists before India's rating upgraded by #Moody

Pic 2: Pseudo Liberals/ Pseudo Economists after India's rating upgraded by #Moody pic.twitter.com/dJQD4QGDRr

— PhD in Bakchodi (@Atheist_Krishna) November 17, 2017