Japan Credit Rating Agency upgrades India to 'A-' with stable outlook
On 2 September 2026, Japan Credit Rating Agency upgraded India's long-term foreign and local currency issuer ratings by one notch from 'BBB+' to 'A-', with a stable outlook.
Summary
Japan Credit Rating Agency (JCR) upgraded India's long-term foreign currency and local currency issuer ratings by one notch from 'BBB+' to 'A-' with a stable outlook, the Finance Ministry said on 2 September 2026. JCR also raised India's country ceiling by one notch to 'A'. The agency cited strong growth, including 7.8% real GDP growth in the latest MoSPI estimates, better quality of spending with a focus on capital expenditure, and a sounder financial system. JCR noted the Centre's fiscal deficit fell from 4.7% of GDP in FY25 to 4.4% in FY26.
Key facts
- Agency
- Japan Credit Rating Agency (JCR)
- Rating
- 'BBB+' → 'A-' (one notch); outlook Stable
- Country ceiling
- Raised to 'A'
- Growth cited
- 7.8% real GDP growth (latest MoSPI estimate)
- Fiscal deficit
- 4.7% (FY25) → 4.4% (FY26)
Practice MCQs 4 questions
To what level did Japan Credit Rating Agency upgrade India's long-term issuer ratings on 2 September 2026?
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Correct answer: C — A-
JCR upgraded India by one notch from 'BBB+' to 'A-' with a stable outlook.
Along with the rating upgrade, to what level did JCR raise India's country ceiling in September 2026?
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Correct answer: A — A
JCR raised India's country ceiling by one notch to 'A'.
According to JCR, the Central Government's fiscal deficit declined to what level in FY26?
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Correct answer: D — 4.4% of GDP
JCR noted the fiscal deficit declined from 4.7% in FY25 to 4.4% in FY26.
Consider the following statements about JCR's September 2026 rating action on India: 1. India's ratings were upgraded by two notches. 2. The outlook on the ratings is Stable. Which of the above is/are correct?
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Correct answer: B — 2 only
Statement 1 is wrong: the upgrade was by one notch (BBB+ to A-). Statement 2 is correct.