Fitch keeps India rating unchanged for 12th yr in a row

Refusing to upgrade India's credit rating for the 12th year in a row, Fitch Thursday retained its sovereign rating for the country at 'BBB-', the lowest investment grade with a stable outlook, saying a weak fiscal position continues to constrain the ratings and there were significant risks to macroeconomic outlook.

The government has been making a strong pitch to Fitch Ratings for an upgrade after rival Moody's Investors Service in November 2017 gave the country its first sovereign rating upgrade since 2004.

Fitch had last upgraded India's sovereign rating from BB+ to BBB- with a stable outlook on August 1, 2006.

"Fitch Ratings has affirmed India's long-term foreign-currency issuer default rating (IDR) at 'BBB-' with a Stable Outlook," it said in a statement.

The rating, it said, "balances a strong medium-term growth outlook and favourable external balances relative to peers with weak fiscal finances, a fragile financial sector and some lagging structural factors."
"Risks to the macroeconomic outlook are significant, and include a drop in credit growth, resulting from further problems in the banking or shadow-banking sector," it said. "A weak fiscal position continues to constrain India's sovereign ratings."