In September 2026, the Japan Credit Rating Agency (JCR) upgraded India's long-term sovereign rating to which grade?

A minus. JCR raised India by one notch, from BBB+ to A-, on 2 September 2026. It cited fast growth, digital public infrastructure, GST and cleaner banks. Read more: IndEco0336 — Sovereign Credit Ratings: Why India’s Upgrades Matter.

On the S&P and Fitch rating scale, which is the lowest investment-grade rating?

BBB minus. BBB minus (BBB-) is the lowest investment grade at S&P and Fitch. The matching grade at Moody's is Baa3. Ratings of BB+ and below are high-yield, or junk. Read more: IndEco0336 — Sovereign Credit Ratings: Why India’s Upgrades Matter.

Match the agency with India's rating as of 2026: A. JCR B. S&P Global C. Fitch D. Moody's 1. BBB 2. Baa3 3. A- 4. BBB-

A-3, B-1, C-4, D-2. JCR rates India A- (September 2026). S&P rates it BBB (August 2025). Fitch kept India at BBB- (August 2026). Moody's has India at Baa3 since June 2020. Read more: IndEco0336 — Sovereign Credit Ratings: Why India’s Upgrades Matter.

Assertion (A): An upgrade in a country's sovereign credit rating usually lowers its government's borrowing cost. Reason (R): A higher rating signals a lower risk of default, so lenders accept a lower interest rate.

Both A and R are true, and R is the correct explanation of A. Both are true, and R explains A. A rating measures the risk of default. Lower risk means lenders ask for less interest. The Finance Ministry said the JCR upgrade will lower India's borrowing costs. Read more: IndEco0336 — Sovereign Credit Ratings: Why India’s Upgrades Matter.

MCQ QuestionsMy progress

Consider the following statements about credit rating agencies (CRAs) in India: 1. They are regulated by the Reserve Bank of India. 2. CRISIL was India’s first credit rating agency. 3. TransUnion CIBIL is a credit rating agency that rates sovereign governments. Which of the statements given above is/are correct?

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