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Standard & Poor's sees India's ratings unchanged till next year

India needs to at least strengthen two of its macroeconomic metrics on growth, inflation and fiscal health, said Kim Eng Tan of Standard & Poor's.

Neha Dasgupta and Suvashree Dey Choudhury    Mumbai     Last Updated: March 2, 2015  | 13:15 IST
S&P sees India's credit ratings unchanged till next year
S&P said the quality of fiscal consolidation was not as good as it could have been on structural front. (Photo: Reuters)

Standard & Poor's, the global ratings agency, does not expect an upgrade to India's sovereign debt rating in the next year in the absence of substantial, quality reforms, it said on Monday.

S&P said the quality of fiscal consolidation was not as good as it could have been on structural front, after Finance Minister Arun Jaitley pushed back by a year, to 2017-18, the government's deadline for cutting the fiscal deficit to 3 per cent of gross domestic product (GDP).

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India needs to at least strengthen two of its macroeconomic metrics on growth, inflation and fiscal health, said Kim Eng Tan, Senior Director, Asia-Pacific Sovereign Ratings for S&P.

"However, again, (a) very big improvement is unlikely to come through in next year or so... We don't see the rating going up in the next year or so," Tan said.

The US-based financial services major currently rates the country at its lowest investment grade rating of "BBB-minus", with a "Stable" outlook.

(Reuters)

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