Standard & Poor’s (S&P) revised its outlook on India’s ‘BBB-‘ sovereign credit rating to “stable” from “negative” on Friday, leading investors to question whether a ratings upgrade near.
The revision was backed by an improvement in India’s external position and growth prospects and means it’s no longer on the brink of a “junk” rating. S&P was the last of the three main global ratings agencies with a negative outlook on India; Moody’s never changed India’s outlook, while Fitch upgraded it to stable in 2013.
While the risk of a downgrade is now firmly off the table, a lot more needs to happen before India gets a ratings upgrade, Radhika Rao, economist at DBS told CNBC.
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