New Delhi: International credit rating agency Moody's decision to review possibly upwards India's sovereign ratings only "vindicated" government's view that economic fundamentals were strong, a top finance ministry official said on November 15.

"It only vindicated the stand taken by the finance ministry that the basic fundamentals of the economy are strong," Finance Secretary S Narayan told reporters.

"Our external balance position is very comfortable. We have an accelerating repayment of external debt and rupee value is strong with exchange reserves going up," he said responding to Moody's decision on November 14 to consider upward revision of ratings of India's foreign currency bonds, debt ceiling and bank deposits.

Moody's said upward revision was possible due to "substantial strengthening of India's external financial situation".

The rating agency said 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.

"India's stronger external position has been achieved in spite of the continued stress on the country's public finances and last year's broad-based reduction in import tariffs," it said.

Asked if the fiscal deficit was under control, Narayan said, "Government's endeavour is to keep the fiscal deficit on target (5.3 per cent of GDP in 2002-03)."

PTI