Credit rating agency Standard & Poor’s has reaffirmed India’s sovereign rating at ‘BBB-’ with stable outlook, Economic Affairs Secretary Atanu Chakraborty said on Tuesday.
“They (S&P) have stated that India’s economy continues to achieve impressive long-term growth rates despite a recent deceleration. S&P expects the Indian economy to continue to outperform its peers and that the growth will remain strong over the next 2 years,” tweeted Chakraborty.
In September 2014, S&P had assigned India the lowest investment grade rating with stable outlook. Prior to that, it had assigned the same rating to India with a negative outlook. On November 8, Moody’s Investors Service had cut India’s sovereign credit rating outlook to “negative” from “stable”. It cited “increasing risks, that the country’s economic growth, will remain materially lower than in the past” and the resultant gradual rise in an already-high debt burden. It affirmed the Baa2 foreign-currency and local-currency long-term issuer ratings for India, the second lowest investment grade score.
The rating agency said its decision to revise the outlook was partly attributable to “lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses”.—FE