India faces challenges on stable rating outlook: S&P

India is facing some challenges on its stable rating outlook and the balance of risk factors for its rating may be shifting slightly toward the negative, Standard & Poor’s rating service said.

“High inflation, a weak government fiscal position, and slower economic growth have hurt investor confidence in the rupee, triggered a capital outflow, and weighed on the stable sovereign outlook on India in 2012,” it said in a report on Monday.

S&P has an investment grade BBB- rating with a stable outlook on India.

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Reuters