India’s measures to raise the investment limit for foreign institutional investors (FIIs) in government bonds is a positive for the country’s credit profile since it will help stabilize domestic interest and currency rates.
Raising the limit for foreign institutional investors is credit positive for the government of India because it will increase foreign investment in government securities over the next several months.
The Reserve Bank of India (RBI) last week increased the limit available for FIIs by $5 billion to $25 billion.
Moody’s rates India with a “Baa3” rating, the lowest investment-grade rating, and a “stable” outlook.
