Rating agencies wake up after 19 years - India Sovereign Rating

In a 𝘀𝗲𝘃𝗲𝗿𝗲𝗹𝘆 𝗹𝗮𝗴𝗴𝗶𝗻𝗴 𝗺𝗼𝘃𝗲 𝗯𝘂𝘁 𝗳𝗶𝗿𝘀𝘁 𝗮𝗺𝗼𝗻𝗴 𝗽𝗲𝗲𝗿𝘀, S&P Global has upgraded India’s sovereign credit rating to ‘BBB’ from ‘BBB-’. (The BBB- rating that was assigned back in 2007 remained unchanged for almost 19 years, even as the Indian economy transformed and strengthened beyond recognition.)

India’s ratings have consistently lagged behind its actual fundamentals despite:

  • Stable debt servicing and a zero sovereign default history

  • Political stability and a consistent reform momentum

  • Resilience through multiple global crises

  • A credible inflation-targeting regime backed by the RBI

India deserves far greater recognition for its economic stability, reform drive, and sustained growth trajectory beyond what credit ratings have traditionally reflected.

Rating agencies’ standardised models 𝗼𝗳𝘁𝗲𝗻 𝗳𝗮𝗶𝗹 𝘁𝗼 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 𝗳𝗼𝗿 𝘂𝗻𝗶𝗾𝘂𝗲 𝘀𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝘀 𝗮𝗻𝗱 𝗮 𝗽𝗿𝗼𝘃𝗲𝗻 𝘁𝗿𝗮𝗰𝗸 𝗿𝗲𝗰𝗼𝗿𝗱. As a result, many robust institutions and sovereigns remain bogged down by ratings lower than they deserve.

(First Published on LinkedIn in August 2025 https://www.linkedin.com/posts/alokkarkera_sp-global-upgrades-indias-sovereign-rating-share-7361706702091489280-quoF/)

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