S&P Retains India’s Rating, Outlook
S&P Retains India’s Rating, Outlook

S&P Retains India’s Rating, Outlook

S&P Retains India’s Rating, Outlook

Close on the heels of Moody’s upgrading India’s sovereign credit rating, another global agency, Standard & Poor’s, Friday kept its rating unchanged at ‘BBB-’ while also keeping the outlook ‘stable’, TV reports said citing sources.
S&P took a favorable view of Prime Minister Narendra Modi administration’s economic reforms undertaken and lauded India’s fiscal consolidation drive, but refrained from upgrading the credit rating from the current ‘BBB-’, the lowest investment grade, FEonline reported.
Notably, 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.”
Last year, 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.
Many top voices had said that India’s current fiscal position warrants an upgrade. “The S&P is coming out with its review, we are bracing for both a positive and a negative outcome of their assessment,” a senior finance ministry official told the Indian Express Thursday.
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.
In a recent commentary S&P had appreciated India’s structural reforms such as Goods and Services Tax. “The government’s proposed capital infusions step will help to address the banks’ bloated balance sheets, which are partly constraining the economy,” said S&P Global Ratings credit analyst Amit Pandey.
Earlier, the government had been critical of the rating agency’s methodologies. In May 2017, chief economic advisor, Arvind Subramaniam,  had said, “The ratings agencies have been inconsistent in their treatment of China and India. Given this record—what we call Poor Standards—my question is: why do we take these rating analysts seriously at all?”

Short URL : https://goo.gl/eQSnRK
  1. https://goo.gl/5oEhye
  • https://goo.gl/Tk2urp
  • https://goo.gl/wqMFoc
  • https://goo.gl/DeisEn
  • https://goo.gl/tghzpi

You can also read ...

The 2017 “WannaCry” cyber attack demanded affected users wire ransom money via Bitcoin.
You don’t have to be a digital whizz kid to know that the wars...
South Africa Wants to Increase VAT Rates
With an economic downgrade to junk status, a slowly growing...
A woman protests a planned coal-fired plant  in southern Thailand.
Southeast Asian governments are finding themselves caught...
Singapore to Hike GST for First  Time in Decade
Singapore is expected to raise goods and services tax for the...
Malaysia has shown willingness to move towards  a market-oriented mechanism.
Forty-three World Trade Organization members who participated...
62% of Japan Loan Rate  Below 1%
After two years of the Bank of Japan guiding key interest...
China’s Commerce Ministry says the proposed US measures are groundless.
China said proposed US tariffs on imported steel and aluminum...
Fitch Upgrades Greece
Fitch Ratings raised Greece’s sovereign credit rating by one...

Add new comment

Read our comment policy before posting your viewpoints