Affirms 'BBB-' long-term and 'A-3' short-term ratings.
-------------------------------------------------------------------------------- Ratings on India remain constrained by a weak fiscal profile, especially the high Government debt burden and deficit, which are still among the largest for rated sovereigns. -------------------------------------------------------------------------------- Our Bureau Mumbai, Oct. 31 International ratings agency Standard and Poor's affirmed its 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. The outlook on the long-term rating remains stable. The report by S&P said the ratings on India reflect the country's strong economic growth prospects and its deep Government debt market, which helps accommodate its weak fiscal position. The report quoted S&P's credit analyst Mr Takahira Ogawa as saying, "India's economic prospects remain strong with growth likely to average more than 7 per cent in the medium term. Underpinning that growth is the gradual deregulation of the industrial sector, continued trade liberalisation, a dynamic service sector, and modest improvements in infrastructure." Mr Ogawa also said that the ratings on India remain constrained by a weak fiscal profile, especially the high Government debt burden and deficit, which are still among the largest for rated sovereigns. The report also said that the stable rating outlook balances India's good external liquidity and growth prospects with its weak fiscal flexibility. An improvement in the sovereign ratings will depend on resumed fiscal consolidation that leads to a materially lower debt and interest burden, and additional reforms that lift the country's growth prospects and income levels. On the other hand, further fiscal slippage, a marked decline in external liquidity indicators, or policy measures that weaken economic growth prospects, could lead to downward pressure on the ratings, the report said. The sovereign ratings are also constrained by the low per capita income of the country, which points to the challenges of poverty alleviation. Infrastructure needs remain high in both the huge agricultural sector and the industrial sector, the report added. http://www.thehindubusinessline.com/2008/11/01/stories/2008110150511000.htm Rich get experience. Experienced get rich. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
