After Moody’s rating give an outstanding improvement for Central Government policies, a disappointing rating for the government published today. The global rating agency Standard & Poor’s (S&P) kept India’s sovereign ratings maintained as ‘stable’ in its latest ratings.
Elaborating on the rating, S&P said that stable outlook reflects India’s growth will remain strong over the next two years. It also said India will maintain its sound external accounts position and fiscal deficits will remain broadly in line with expectations. Last week, Moody’s revised the country’s sovereign ratings to Baa2 from Baa3, citing the implementation of several reforms like the GST rollout, the insolvency act, and demonetization.
The Narendra Modi government was hopeful that S&P would upgrade its rankings for India. The S & P further said that India’s strong GDP growth, external profile and improving monetary credibility are balanced against low per capita income and high debt.
S&P had last changed India’s rating in January 2007, to BBB-, which is the lowest. The outlook assigned then was ‘stable’. It changed the outlook to ‘negative’ in 2009 and raised it to ‘stable’ in 2010.
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