Standard & Poor's has reiterated that it may revise India's outlook to 'stable' from 'negative' if the government implements initiatives to reduce structural fiscal deficits, improve investment climate, and increase growth prospects.
Conversely, a downgrade is also likely if India's economic growth prospects dim, its external position deteriorates, its political climate worsens, or fiscal reforms slow, S&P said in a report on Asia-Pacific Sovereign Ratings on Wednesday.
India's sovereign rating is currently at 'BBB-minus', the lowest investment grade, which signals at least a one-in-three likelihood of a downgrade within the next 24 months.
Copyright @ Thomson Reuters 2013
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