New Delhi (TIP)- S&P Global Ratings on Thursday , May 18, affirmed India’s sovereign rating at ‘BBB-’ with a stable outlook and said sound economic fundamentals will underpin growth over the next 2-3 years.
The stable outlook on the long-term rating reflects S&P’s view that India’s strong economy and healthy revenue growth will support its weak fiscal settings.
“S&P Global Ratings affirmed its ‘BBB-’ long-term and ‘A-3’ short-term unsolicited foreign and local currency sovereign credit ratings on India. The outlook on the long-term rating is stable,” the US-based agency said in a statement.
‘BBB-’ is the lowest investment grade rating.
“India’s economy is performing well amid challenging global conditions. We anticipate sound fundamentals to underpin growth over the next two to three years,” S&P said.
The government will likely maintain elevated fiscal deficits and a large debt stock despite ongoing consolidation efforts, it added.
Earlier this month, another global rating agency Fitch had affirmed India’s sovereign rating at ‘BBB-’ with a stable outlook, citing robust growth and resilient external finances.
Stock markets turn volatile after positive beginning
Equity benchmark indices started the trade on a firm note on Friday, May 19, amid positive trend in the global stock markets and foreign fund inflows but later turned volatile.
The 30-share BSE Sensex climbed 205.08 points to 61,636.82 in early trade. The NSE Nifty advanced 56.2 points to 18,186.15 in initial deals.
Later, both the benchmark indices turned volatile and were trading marginally lower.
The Sensex quoted 48.29 points lower at 61,383.45 and the Nifty dipped 28.30 points to 18,101.65.