S&P Upgraded India’s Outlook to Stable

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.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza