New York, Nov 15: International rating agency Moody's on Thursday indicated it could upgrade India's sovereign rating for foreign currency bonds, debt ceiling and bank deposits due to "substantial strengthening of its external financial situation". The rating agency said in a statement that it would review for possible upgrade of India's present ratings of Ba2 for foreign currency ceiling for debt and Ba3 foreign currency country ceiling for bank deposits.

It said the sovereign rating likely to be assigned for foreign currency denominated bond in the international capital markets will also be reviewed for possible upgrade.
But the Ba2 domestic currency bond rating of the government was not on review and that the outlook on this rating remains negative, it said.
Moody's said its ongoing analysis of India was focused on whether the fiscal problems facing the government could spill over into a balance of payments crisis, a linkage that would limit the difference between the foreign and domestic currency rating. Bureau Report