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:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Kingston HyperX Cloud Alpha S Blackout Edition review: A comfortable, feature-rich set that's well worth the asking price
News & Analysis

Kingston HyperX Cloud Alpha S Blackout Edition review: A comfortable, feature-rich set that's well worth the asking price

HyperX Cloud Alpha S is a set that sounds good, is comfortable to use, and features an excellent mic.

Realme Watch S with 16 sports mode and 15-days battery to be launched on 2 November
News & Analysis

Realme Watch S with 16 sports mode and 15-days battery to be launched on 2 November

The smartwatch is expected to come with a heart rate monitor and blood-oxygen level tracker.

NASA think that OSIRIS-REx spacecraft might find evidence of water on asteroid Bennu
science

NASA think that OSIRIS-REx spacecraft might find evidence of water on asteroid Bennu

NASA researchers believe Bennu's parent body had an ancient river that flowed through cracks and has now left behind carbonate.