New Delhi : Ahead of the General Election, global ratings agency Fitch today retained India’s sovereign rating at ‘BBB-’, the lowest investment grade, with stable outlook, saying a weak fiscal position continues to constrain its rating.
This is the 13th year in a row that global rating agency Fitch has rated India at ‘BBB-’. It had last upgraded India’s sovereign rating from ‘BB+’ to ‘BBB-’ with a stable outlook on August 1, 2006.
Stating that a weak fiscal position continues to constrain India’s sovereign ratings, Fitch said the next government’s medium-term fiscal policy will be of particular importance from a rating perspective.
Fitch said that though the General Election results in some temporary uncertainty about the policy agenda, but over the past 30 years governments of different political persuasions have been generally reform-minded.
Fitch said a robust growth outlook continues to support India’s credit profile and expects the country to grow at 6.8% to 7.1% in the current fiscal.
