India denies reports influencing Moody's to better its ratings
New Delhi [India], Dec. 29 (ANI): Union Information and Broadcasting Minister M. Venkaiah Naidu on Thursday denied reports that the government is trying to influence a credit rating agency to improve its sovereign debt ratings.
A recently published report showed that India had criticised Moody's rating methods and pushed aggressively for an upgrade, but the U.S.-based credit rating agency declined to entertain citing concerns over the country's debt levels and fragile banks.
"At the end of the day rating is done by them. So, there is no question of the government trying to influence anybody. We are trying to place facts before them. Like the World Bank and other agencies, they have now increased our rating in various aspects of governance, including ease of doing business, including the periodical review," Naidu told media.
The report further alleged that the finance ministry questioned Moody's methodology, saying it was not accounting for a steady decline in India's debt burden in recent years. It said the agency ignored countries' levels of development when assessing their fiscal strength.
Moody's rejected those arguments saying India's debt situation was not as hunky -dory as the government maintained and its banks were a cause for concern. (ANI)