Homeeconomy News

    S&P retains India's rating at 'BBB-' with stable outlook for 14th year in a row

    S&P retains India's rating at 'BBB-' with stable outlook for 14th year in a row

    S&P retains India's rating at 'BBB-' with stable outlook for 14th year in a row
    Profile image

    By CNBCTV18.com  IST (Updated)

    Mini

    The rating agency said the country's strong external settings will act as a buffer against financial strains despite elevated government funding needs over the next 24 months.

    Global rating agency S&P Global Ratings on Tuesday retained India's sovereign rating at the lowest investment grade of 'BBB-' for the 14th year in a row with a stable outlook.
    The rating agency said the country's strong external settings will act as a buffer against financial strains despite elevated government funding needs over the next 24 months.
    The sovereign credit ratings on India reflect the economy's above-average long-term real GDP growth, sound external profile, and evolving monetary settings, S&P Global Ratings stated.
    "India's democratic institutions promote policy stability and compromise and also underpin the ratings. These strengths are balanced against vulnerabilities stemming from the country's low per capita income and weak fiscal settings, including consistently elevated general government deficits and indebtedness," it said in a statement.
    S&P Global Ratings has forecast economic activity in India to begin to normalise throughout the remainder of fiscal 2022, resulting in real GDP growth of about 9.5 percent. A significant proportion of this rebound will be due to the very weak base in the prior fiscal year when the economy contracted by a record 7.3 percent.
    India's fiscal settings are weak, and deficits will remain elevated over the coming years even as the government undertakes some consolidation.
    The country's strong external settings help buffer the risks associated with the government's high deficits and debt stock, S&P said while affirming 'BBB-' long-term and 'A-3' short-term unsolicited foreign and local currency sovereign ratings on India.
    "The stable outlook reflects our expectation that India''s economy will recover following the resolution of the COVID-19 pandemic, and that the country's strong external settings will act as a buffer against financial strains despite elevated government funding needs over the next 24 months," it added.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng