Global ratings agency S&P on Thursday affirmed India’s sovereign ratings at ‘BBB/A-2’ with a stable outlook, saying the economy’s strong fundamentals would help it withstand near-term pressures from elevated energy prices and weak agricultural conditions, even as growth is expected to moderate this fiscal year.
The ratings agency said India’s credit profile continues to be anchored by a dynamic and fast-growing economy, a strong external balance sheet and stable institutions that support policy predictability. These strengths are, however, counterbalanced by weak public finances, a burdensome debt stock and low per-capita income.
