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Moodys Upgrades Its English By Adding Entire New Alphabets to What It Thinks of India

Moody’s has decided that India’s rating outlook is now “Positive” from “Stable”, yesterday. India is rated “Baa3 (Positive)” now, which sounds like a battery operated goat. Not to say that we’re mountainous creatures, but it is likely we sometimes behave like sheep. Thrice. Positively. 

You might think at Baa3 is better than Aaa and you would be wrong. The Aaa countries, like Sweden, Singapore, and even the US are screaming buys.

They started with some A, B and C. Then they added small letters to complicate things. Then a number (3, 2, 1). Then a (Positive) or (Stable) or (Negative). It’s a wonder we let these guys get any more airtime than baby raccoons cuddling up to elephants. (Which I would rate highly, but I digress)

In Moody’s country investment ratings, India is still higher than:

  • Portugal (Ba2)
  • Greece (Caa1)
  • Russia (Ba1)

And still lower than China (Aa3), Brazil, Spain, Italy (Baa2)  or Ireland (Baa1).

India is still at the lowest investment grade there is – and we have very little dollar denominated debt. While I believe there are headwinds for India, its a little silly to say we are way lower than these other countries that have just about kinda-sorta managed to stick it through a crisis. Rating agencies typically don’t know their head from their backside, so at best this is newsworthy for the sound it makes (Baa) or for it’s usefulness (Bah).


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  • Raman says:

    One of your (or probably THE) best humorous posts! I was literally ROFLing for 5 mins..! 🙂 Keep it up!!!!
    Seriously, I was telling all and sundry yday about how on the same day, same page (on, there were 2 news items from Moodys, one for the “outlook” and the 2nd saying something like “Moody’s red flags banks due to NPAs”… And I was wondering how to reconcile the two – maybe that was left as an exercise to the “intelligent” reader 🙂

  • kumar says:

    i am waiting eagerly to see when they will start the F series or S series labels.
    So long as we are the sheep, this crap will work.

  • kumar says:

    i also think you have not said enough about what your real feelings are, about this series.
    please tell us deepak 🙂
    i always read with relish the statements put out by people like IDC and Gartner. If what they said came true, this world would be a paradise. May be it is, just not for me.

  • Sanjeev B says:

    A brilliant cut through the crap with your sharp no nonsense knife. Thanks for putting this in perspective better than anyone else.

  • Sam says:

    Remember these are the same people who rated the toxic junk CDOs as AAA that led to the financial crisis. Surprise how short public memory is and their ratings are still taken seriously!