India’s Surprise Credit Boost to Benefit Corporate Debtors
- Spreads on Indian dollar bonds, credit-default swaps tighten
- Sovereign benchmark moves further away from near-junk grade
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Indian companies are set to benefit from their government’s credit-rating upgrade Friday, with the move expected to boost demand for offshore bonds, and spur sales.
Premiums on dollar-denominated Indian corporate bonds over U.S. Treasuries fell by around 5 basis points after Moody’s Investors Service raised India’s sovereign rating one notch to the second-lowest investment grade. Upgrades followed for local banks including State Bank of India.