S&P India credit rating unchanged at BBB-, outlook ‘stable’

After Moody’s credit rating upgrade, all eyes on S&P India review

India News

After global credit rating agency Moody’s upgraded India’s sovereign rating to Baa2 from Baa3 last week, all eyes will be on Standard & Poor’s (S&P) India review expected today. Interestingly, while the Moody’s Investor Service upgrade came after a long gap of 14 years, S&P had last upgraded India’s rating from junk grade “BB+” to lowest investment grade “BBB-” 10 years ago in 2007. S&P has since retained India’s rating at that level, citing the country’s low GDP per capita and weak public finances. Last year, the global firm had said, “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.” Further, the credit rating agency had added that an upgrade could emerge if the government reforms markedly improved India’s fiscal performance and pushed down the level of net general government debt below 60% of the GDP. Currently, India’s general government debt amounts to about 68% of the GDP. “The S&P is coming out with its review, we are bracing for both a positive and a negative outcome of their assessment,” the a senior finance ministry official told the Indian Express. After Moody’s credit rating upgrade, Standard & Poor’s Financial Services declined to comment last week, but maintained that India has a weak fiscal position which needs to be addressed, according to ET Now. Some market participants also questioned the timing of the move, according to Reuters.