S&P affirms India's sovereign rating at 'BBB-', keeps outlook stable

But says country's fiscal settings are weak, and deficits will remain elevated ahead even as the government undertakes some consolidation

Global rating agency Sta­ndard and Poor’s has affirmed India’s sovereign rating at “BBB-” and maintained a stable outlook on gradual recovery in the economy.

India’s recovery will gather pace through the second half of FY22 and into the following year, helping to stabilise the country’s overall credit profile, S&P said in a statement. It, however, warned the country’s fiscal settings were weak, and the deficits would remain elevated over the coming years even as the government undertook some consolidation.

India’s strong external settings help to buffer the risks associated with the government’s high deficits and debt stock.  India’s economy is