S & P retains India's credit rating at BBB- with stable outlook
June 15, 2020
The country’s economy and fiscal position are expected to stabilize and begin to recover from 2021 onwards, as S&P Global Ratings on Wednesday retained India’s lowest investment grade (BBB-) credit rating with a stable outlook. The affirmation of India’s sovereign rating comes as a huge relief to the government as Moody’s Investors Service downgraded India’s sovereign rating one notch to the lowest investment grade with a negative outlook as recently as last week. “While risks to India’s long-term growth rate are rising, ongoing economic reforms, if executed well, should keep the country’s growth rate ahead of peers. The economic hit from COVID-19 will exacerbate India’s weak fiscal settings. We expect a materially larger fiscal deficit this year, followed by consolidation over the next three years," S&P said.