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S&P Ratings to India
News:
- Global rating major Standard and Poor (S&P) has affirmed India’s long term rating at BBB-, the lowest investment grade.
- S&P also kept India's outlook on the long-term rating as stable.
More from S&P:
- Though the risks to long-term growth are rising, if the on-going reform process is executed well, the country’s growth rate would be ahead of its peers.
- There could be a fiscal consolidation over the next three years after a larger fiscal deficit this financial year due to the COVID-19 pandemic.
- India’s economy will recover following the containment of the COVID-19 pandemic.
S&P on GDP Growth and the Rating
- India can face a ratings downgrade over the next 1-2 years if GDP growth fails to meaningfully recover 2021 onwards.
- S&P expects the Indian economy to contract by 5% this fiscal.
- India’s productive capacity had been severely disrupted as millions of workers had left their jobs to return home.
About S&P:
- Standard & Poor's is a business intelligence company that provides credit ratings for bonds, countries, and other investments.
- An S&P credit rating is a letter grade. The best is "AAA." This rating means it is highly likely that the borrower will repay its debt. The worst is "D".