NEW DELHI: Moody’s Ratings is considering the recent India-Pakistan conflict in its evaluation of India’s sovereign credit rating. Representatives from the US-based rating agency met with officials from India’s finance ministry on June 5, 2025, to discuss this matter.
Currently, Moody’s maintains India’s sovereign rating at “Baa3” with a stable outlook, which is the lowest investment-grade rating.
While the agency is factoring in the geopolitical tensions, it is unlikely to alter its existing rating methodology. The assessment will consider the potential economic implications of the conflict, including any impact on fiscal consolidation and defense spending.
