International rating agency Moody's Investors Service, which has a Baa3 stable rating on the country, on Tuesday said the diesel price deregulation announced over the past weekend is "credit positive".
In a note issued from Singapore, its senior vice-president for sovereign risk group Atsi Sheth said, "The decision to fully deregulate diesel prices signals fiscal discipline on the part of the sovereign, which we view as credit positive."Diesel price deregulation will reduce the subsidy burden for the government, although fiscal savings are likely to be limited.