M A I N   N E W S

India’s sovereign credit rating down
Tribune News Service

New Delhi, August 7
International credit rating agency Standard & Poor’s has downgraded India’s sovereign credit rating for both local and foreign currency to “negative” from “stable” in view of the unchecked fiscal deficit and rising domestic indebtedness.

In an assessment likely to effect India’s economy, it also lowered long term local currency rating to “BBB minus” from “BBB”.

The downgrading of the local currency rating reflects unchecked Budget deficits and rising domestic indebtedness.

According to a S&P release, India’s Budget deficit, Centre and states together, is likely to exceed 10 per cent of Gross Domestic Product in the current financial year.

Total public debt could touch 70 per cent of the GDP or more than 400 per cent of revenues, which was higher than that of most similarly rated countries, it said. The rating agency reaffirmed the foreign currency soverign rating to “BB” but the outlook has become “negative” from “stable” earlier.