New Delhi: Global Ratings Agency Standard & Poor’s (S & P) on Tuesday confirms the ranking for long-term Indian foreign currencies and local currency sovereign loans at the lowest investment level and maintain a stable prospect, by saying the economy will recover after the resolution.
Pandemic Covid-19, and that strong country external arrangements will act as a buffer against financial strains even though government fund expansion increases over the next 24 months.
This is the 14th year in a row when the S & P has confirmed India’s rankings at the lowest level of investment.
The agency maintains a long-term rating on BBB (-).
The latest statement from the S & P ended anxiety over the rank of sovereignty which carried out the risk of being lowered, following expenses to help the economy recover from the impact of the Covid-19 pandemic.
Describing the thought of his decision, the agency said that sovereign credit rating in India reflects the growth of real-term real GDP of the economy above average, healthy external profiles, and developing monetary settings.
“This power is balanced with vulnerabilities that come from low-cost per capita countries and weak fiscal arrangements, including an increase in deficit and public debt consistently,” said the agency.