Moody's to focus on how new Indian govt brings down fiscal deficit

  • Reuters, Mumbai
  • Updated: May 16, 2014 17:16 IST

Moody's Investors Service will focus on how the new Indian government brings down the fiscal deficit to sustainable levels when assessing India's credit profile, sovereign rating analyst Atsi Sheth said on Friday.

"One of the things that would be positive for India's credit profile is if the fiscal deficit is reduced quite significantly from current levels of above 4% (of gross domestic product)," Sheth told Reuters in a phone interview.

India's fiscal deficit touched 4.5% of GDP in the fiscal year ended in March 2014. Moody's currently rates India at "Baa3", the lowest investment-grade rating, and a "stable" outlook.

Sheth spoke to Reuters after the Bharatiya Janata Party and its allies were headed for the biggest victory the country has seen in 30 years.

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