Standard and Poor’s (S&P) Global Ratings, today, said India’s credit rating would be retained at the current level for the next two years. It said, the country will see a slightly faster pace of growth in the next couple of years that will support its sovereign rating.
Speaking at a webinar, S&P Global Ratings Director, Andrew Wood said in the moderate downside scenario, there would not be any major impact on the government’s fiscal position.
He added, there could be upside pressure on the general government fiscal deficit forecast of 11 per cent as revenue generation would be weaker, but debt stock would remain roughly stable just above 90 per cent of GDP. Mr Wood further said that India’s rating remains stable on a ‘BBB-‘ rating and they do not expect a change in the rating level over the next two years. He said, there is going to be some near term ramification on India’s economy stemming from the severe second wave of COVID-19 pandemic and that may peep through into our sovereign credit metrics.