New Delhi:
Fitch Ratings on Tuesday reaffirmed India’s sovereign rating with a stable outlook, saying the country has robust growth prospects and resilient external finances.
“Fitch Ratings has confirmed India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB-‘ with a stable outlook,” it said in a statement. Adding strong growth potential is an important supporting factor for the sovereign rating.
“India’s rating reflects the strengths of robust growth prospects compared to peers and resilient external finances, which have helped India cope with the major external shocks of the past year,” said Fitch Ratings.
However, these are offset by India’s weak public finances, exemplified by high deficits and debt compared to peer countries, as well as lagging structural indicators, including World Bank governance indicators and GDP per capita, it added.
The agency has kept India’s credit rating unchanged since August 2006 at ‘BBB-‘, the lowest investment grade rating.
Fitch Ratings predicts India will be one of the fastest growing government bonds in the world at 6 percent in the current fiscal year ending March 2024, supported by a resilient investment outlook.
Still, headwinds from high inflation, high interest rates and weak global demand, along with waning pandemic-driven pent-up demand, will slow growth from our FY23 estimate of 7 percent before rebounding to 6.7. percent in FY25,” the global report said. the rating agency said.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)