Japan's R&I upgrades India's sovereign rating to BBB+ (Stable), third upgrade of 2025
Japanese credit rating agency Rating and Investment Information (R&I) upgraded India's long-term sovereign credit rating to BBB+ from BBB with a Stable outlook on 19 September 2025, the third upgrade by a sovereign rating agency in 2025.
Summary
Japanese credit rating agency Rating and Investment Information, Inc. (R&I) upgraded India's long-term sovereign credit rating to 'BBB+' from 'BBB' on 19 September 2025, retaining a Stable outlook. The Finance Ministry said it was the third upgrade by a sovereign rating agency in 2025, after S&P raised India to 'BBB' from 'BBB-' in August and Morningstar DBRS to 'BBB' from 'BBB (low)' in May. R&I cited India's size and fast growth, demographic dividend, robust domestic demand, fiscal consolidation through buoyant tax revenue and subsidy rationalisation, and external stability. The agency saw the recent US tariff increase as a risk but said India's limited reliance on US exports would contain the impact.
Key facts
- Agency
- Rating and Investment Information, Inc. (R&I), Japan
- Rating
- BBB+ from BBB; outlook Stable
- Date
- 19 Sep 2025
- Earlier 2025 upgrades
- S&P to BBB (Aug); Morningstar DBRS to BBB (May)
- Risk noted
- US tariff increase; impact contained by limited reliance on US exports
Practice MCQs 3 questions
To what level did Japan's R&I upgrade India's long-term sovereign credit rating on 19 September 2025?
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Correct answer: B — BBB+
R&I upgraded India to 'BBB+' from 'BBB', retaining a Stable outlook.
Which agency upgraded India's sovereign rating to 'BBB' from 'BBB-' in August 2025, before R&I's September upgrade?
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Correct answer: D — S&P
S&P upgraded India to 'BBB' from 'BBB-' in August 2025; Morningstar DBRS upgraded India to 'BBB' from 'BBB (low)' in May 2025.
Consider the following statements about India's sovereign rating upgrades in 2025: 1. R&I's upgrade in September 2025 was the third upgrade of India by a sovereign rating agency that year. 2. R&I changed India's outlook from Stable to Positive. Which of the above is/are correct?
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Correct answer: A — 1 only
Only statement 1 is correct: it was the third upgrade of 2025, and R&I retained the Stable outlook while raising the rating to BBB+.