Rating upgrade by S&P unlikely

Our Bureau Updated - May 04, 2013 at 09:45 PM.

Amid the Government’s effort to get a rating upgrade, Standard & Poor's has ruled out the possibility, citing the rating agency's “negative” outlook on the Indian economy's BBB-minus rating. This is the last investment rating.

S&P’s Managing Director of Sovereign and International Public Finance Ratings (Asia Pacific) Elena Okorochenko said usually when there was a ‘negative’ outlook, the only change could be either a rating downgrade or an improvement in outlook to ‘stable.’ She said a rating upgrade was “highly improbable.”

“An improvement in outlook would be a kind of upgrade. But a rating upgrade at this point is not on the cards,” she told reporters on the sidelines of an Asian Development Bank meet on the outskirts of New Delhi.

S&P’s had warned that there was a significant possibility of it cutting India's credit rating. The rating agency has a BBB-minus rating with a negative outlook on India.

Published on May 4, 2013 13:25