New Delhi, Sept. 29 -- Moody's Ratings on Monday assigned a Baa3 rating and a 'stable' outlook to India's long-term local and foreign-currency issuer ratings and the local-currency senior unsecured debt due to strong economic growth and a sound external position.

The international rating agency also confirmed India's other short-term local-currency rating at P-3.

"The rating affirmation and stable outlook reflect our view that India's prevailing credit strengths, including its large, fast-growing economy, sound external position, and stable domestic financing base for ongoing fiscal deficits will be sustained," Moody's Ratings said in a statement.

India's credit strength is offset by persistent weaknesses in the fiscal side, which will...