S&P keeps outlook on India stable, retains BBB- rating

Ratings agency takes favourable view on reforms being undertaken and praises Modi govt's fiscal consolidation drive

Standard & Poor's stuck with its "BBB-minus" sovereign rating and "stable" outlook for India on Friday, declining to follow Moody's recent decision to upgrade the country's rating, citing low income levels, high debt and weaker government finances.

Moody's Investors Services had a week ago upgraded India's credit rating to "Baa2" from "Baa3", one notch higher than S&P's current rating, citing progress on economic and institutional reforms would lift the country's growth potential.

But in a statement, S&P said it was comfortable with its current rating, which leaves India at its lowest investment-grade standing, despite welcoming recent actions such