Morningstar DBRS upgrades India's sovereign rating to 'BBB' with Stable trend
Morningstar DBRS upgraded India's long-term foreign and local currency issuer ratings from BBB (low) to BBB with a Stable trend, the Finance Ministry said on 9 May 2025.
Summary
Global sovereign credit rating agency Morningstar DBRS upgraded India's Long-Term Foreign and Local Currency Issuer Ratings from BBB (low) to BBB with a Stable trend, the Ministry of Finance said on 9 May 2025. Short-Term ratings were raised from R-2 (middle) to R-2 (high). Drivers cited include structural reforms, fiscal consolidation, average GDP growth of 8.2% during FY22–25 with macroeconomic stability, and a resilient banking system with non-performing loans at a 13-year low.
Key facts
- Agency
- Morningstar DBRS
- Long-term rating
- BBB (low) → BBB, Stable
- Short-term rating
- R-2 (middle) → R-2 (high)
- Average GDP growth FY22–25
- 8.2%
- NPLs
- 13-year low
Practice MCQs 2 questions
To which rating did Morningstar DBRS upgrade India's long-term foreign and local currency issuer ratings in May 2025?
Show answer
Correct answer: B — BBB
The ratings were upgraded from BBB (low) to BBB with a Stable trend.
Consider the following statements about the Morningstar DBRS upgrade: 1. India's short-term ratings were upgraded to R-1 (low). 2. The agency cited average GDP growth of 6.5% during FY22–25. Which of the statements given above is/are correct?
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Correct answer: D — Neither 1 nor 2
Both are wrong: short-term ratings went to R-2 (high) from R-2 (middle), and average growth cited was 8.2%.