S&P affirms India rating at lowest investment grade for 14th year in a row

S&P Global Ratings on July 13 affirmed India’s sovereign rating at the lowest investment grade of ‘BBB-’ for the 14th year in a row with a stable outlook, and said that the country’s strong ex

S&P Global Ratings on July 13 affirmed India’s sovereign rating at the lowest investment grade of ‘BBB-’ for the 14th year in a row with a stable outlook, and said 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. 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.