Learn all Moody's and how it changed India's rating

Business
Nov 20 2017 09:51 PM
Mahima Rao

Learn all Moody's and how it changed India's rating

After 13 years, the US rating agency Moody's has increased the rating of India's sovereign debt. Moody's has increased ratings from Baa3 to Baa2 in the hope of faster economic growth. After reading this news, there may have been many questions in your mind about whether there is Moody's and why changing the rating affects the country. That is why we have brought the answers to all these questions for you.

Moody's rating system was started in 1909 by John Moody. Its purpose is to give investors a grade so that they can gain credit in the market . Moody's Corporation is the parent company of Moody's Investors Service, which works as credit rating and research.

What is moody's work

Moody's is currently an important part of the global capital market. It gives credit ratings, research tools and analysis to the financial market. Moody's is a credit rating agency. The agency decides the rating of a country with more than 100 economic experts. However, there is no formula for this.

It is considered to be a debt to any country and the ability to repay it. In addition, the rating agency keeps in mind the impact of economic reforms and its future in the country.

Increasing the rating of Moody's
According to experts, changes in the economy of the economy from time to time but the Soviet rating upgrade shows that Moody's has also been right on economic reforms made by the government.

What will happen after upgrading the rating?

There are many ways to upgrade the rating of Moody's in terms of upgrading the rating. Economic experts of the country are taking it very positively. In such a situation, the country gets excited to get the loan. Also, foreign companies in that country start increasing investment.

How many rating symbols are there?
The agency has set 9 symbols for grading - Aaa, Aa, A, Baa, Ba, B, Caa, Ca and C. There are also 1, 2, 3 sub-categories of Aa to Caa.

What does Rating symbol mean?
A symbol is right for rating investment. At the same time, under the Baa3 rating, nothing means that nothing is going well in that country. The economic situation is not well there. In such a case investing in that country can be risky.