S&P cautious, says govt

Ashok Lahiri, the chief economic adviser to the finance ministry, yesterday said he was surprised that Standard & Poor's Ratings Services did not revise India's long-term foreign currency ratings.

Though Lahiri welcomed the international rating agency's move to revise the outlook from negative to stable, he said, "It is surprising that the present strength of India's external balance is being considered speculative."

According to Lahiri, it will be interesting to know the price at which Indian blue chip companies raise funds in the overseas market. "I doubt if the rating will be speculative," Lahiri said.