Sovereign credit ratings: India

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This is a collection of articles archived for the excellence of their content.

2016

India's sovereign credit ratings in 2016, according to Fitch, Moody’s, S&P
The Times of India

S&P: a stable BBB-

S&P retains India's credit ratings as stable, Nov 03 2016 : The Times of India

Says Unlikely To Upgrade For Two Years

S&P has retained India's `BBB-' long-term sovereign credit ratings with a stable outlook but has said it is unlikely to upgrade the country's ratings in the next two years as public finances remain weak.

The government had made a strong pitch to global agencies to upgrade the country's ratings and pointed to the string of reform measures which had been unveiled.

“The stable outlook balances India's sound external position and inclusive policymaking tradition against the vulnerabilities stemming from its low per capita income and weak public finances,“ S&P said in a statement. “The outlook indicates that we do not expect to change our rating on India this year or next, based on our current set of forecasts.“ The BBB (-) is the lowest investment grade rating.

It said upward pressure on the ratings could build if the government's reforms markedly improve its general fiscal out-turns and the level of net general government debt, so that it falls below 60% of GDP .

“Downward pressure on the ratings could re-emerge if growth disappoints (perhaps as a result of stalling reforms); if, contrary to our expectations, the new monetary council is not effective in achieving its targets; or if the external liquidity position deteriorates more than we currently expect,“ the agency said.

But it said that India's governing parties have made progress in building consen sus on passage of laws to address long-standing impediments to the country's growth.“We believe these measures, supported by India's well-entrenched democracy , will promote greater economic flexibility and help redress public fi nances over time.“

S&P said a rating constraint is India's low GDP per capita, which the agency estimates at $1,700 in 2016. It expects the economy to grow by 7.9% in 2016 and 8% on average over 2016-2018.