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Supported by India's economic resilience and fiscal consolidation, S&P raises India's credit rating.
Jin10 data, August 14 - Credit rating agency S&P Global upgraded India's long-term sovereign credit rating from "BBB-" to "BBB" on Thursday, citing India's economic resilience and ongoing fiscal consolidation. The agency had previously adjusted India's rating outlook from stable to positive in May last year due to strong economic growth and improvements in the quality of government spending. S&P stated in a release: "The upgrade of India's rating reflects its strong economic growth, while the strengthening monetary policy environment anchors inflation expectations. Coupled with the government's commitment to fiscal consolidation and efforts to improve spending quality, we believe these factors have collectively driven the improvement in credit metrics." However, S&P warned that if there is a political wavering in India's commitment to consolidating public finances, the rating could be downgraded; additionally, if economic growth slows significantly on a structural level, thereby undermining fiscal sustainability, it could also bring downward pressure. Of course, the rating could also further...