Citing weak fiscal position, US-based agency Fitch today kept India’s sovereign rating unchanged at ‘BBB-’, the lowest investment grade with stable outlook assigned to the country more than a decade ago. The leading rating agency, however, expects India’s growth rate to accelerate to 7.7% in fiscals 2017 and 2018, from 7.1% in fiscal 2016. Fitch had last upgraded India’s sovereign rating from BB+ to BBB- with stable outlook on August 1, 2006. In its note on rating, Fitch said: “The sovereign ratings at BBB- balance a strong medium-term growth outlook and favourable external balances with a weak fiscal position and difficult business environment”. The stable outlook, it said, reflects the assessment that upside and downside risks to the ratings are broadly balanced.

Source: Hindustan Times May 02, 2017 13:30 UTC