Fitch retains India rating at 'BBB-' with stable outlook; says country's medium-term growth potential is strong

The Fitch review for annual sovereign rating follows India's rating upgrade by Moody's after a gap of 14 years. S&P had retained the earlier rating.

PTI April 27, 2018 14:54:49 IST
Fitch retains India rating at 'BBB-' with stable outlook; says country's medium-term growth potential is strong

New Delhi: Global credit rating agency Fitch on Friday affirmed India's sovereign rating at 'BBB-' with 'stable' outlook, saying that the country's medium-term growth potential is strong. 'BBB-' rating indicates lowest investment grade.

"India's rating balances a strong medium-term growth outlook and favourable external balances with weak fiscal finances and some lagging structural factors, including governance standards and a still-difficult, but improving, business environment," Fitch said.

Fitch retains India rating at BBB with stable outlook says countrys mediumterm growth potential is strong

Representational image. Reuters

It projected India's growth at 7.3 percent in current the fiscal and further to 7.5 percent in 2019-20. Growth is projected to be 6.7 percent in the last fiscal, ended 31 March.

"The Stable Outlook reflects Fitch's assessment that upside and downside risks to the ratings are broadly balanced," Fitch said.

The Fitch review for annual sovereign rating follows India's rating upgrade by Moody's after a gap of 14 years. S&P had retained the earlier rating.

Fitch said India's fiscal finances are weak but current account deficit position is favourable.

Per capita GDP is the lowest among 'BBB' range peers and continued structural reform implementation should enhance productivity.

"India has the highest medium-term growth potential among the largest emerging markets," according to Fitch analysis.

Fitch has kept rating unchanged at 'BBB-', the lowest investment grade, with stable outlook. The rating was assigned to the country 11 years ago.

Fitch had last upgraded the rating from 'BB+' to 'BBB-' with stable outlook on 1 August, 2006. Later, it changed the outlook to negative in 2012 and then again to stable in the following year, though it kept the rating unchanged at the lowest investment grade.

Updated Date:

also read

From Paytm to Nykaa IPO Listing, here's everything you need to know about Initial Public Offerings
Business

From Paytm to Nykaa IPO Listing, here's everything you need to know about Initial Public Offerings

IPOs help enterprises and startups to improve and expand their business and also lends more credibility to the company as it is under scrutiny

India supports inclusive, representative govt in Afghanistan, says EAM Jaishankar
World

India supports inclusive, representative govt in Afghanistan, says EAM Jaishankar

In a veiled reference to China's Belt and Road Initiative, Jaishankar on Thursday said any serious connectivity initiative must be consultative, transparent and participatory and conform to principles of sovereignty and territorial integrity

Ola S1, S1 Pro electric scooter deliveries delayed once again, now slated to begin mid-December
News & Analysis

Ola S1, S1 Pro electric scooter deliveries delayed once again, now slated to begin mid-December

In the latest in a series of delays, Ola Electric has pushed deliveries of its S1 and S1 Pro e-scooters by around three weeks citing a shortage of chipsets and electronic parts.