Confident of economic recovery, S&P keeps India's rating at 'BBB-'

Says fiscal position weak, but sees strong growth prospects over 2-3 years

Standard & Poor’s (S&P) on Thursday retained India’s ratings at lowest investment grade of BBB- with stable outlook as the economy’s fiscal position remains weak, which hampers consolidation over the next few years. 

In a statement, S&P said tight credit conditions remained in the financial sector that would hamper growth in private consumption over the coming quarters. 

However, factors affecting economic expansion are cyclical trends and the economy retained its structural growth performance, it said. As such, it believes the economy to gradually recover to its long-term trend over two to three years.

The stable outlook on India's ratings reflects