Rediff.com  » Business » S&P cautions, India's fiscal health still vulnerable

S&P cautions, India's fiscal health still vulnerable

By Suvashree Dey Choudhury and Neha Dasgupta
April 13, 2015 14:57 IST
Get Rediff News in your Inbox:

India's fiscal weakness remains a vulnerable spot in its sovereign credit profile, ratings agency Standard & Poor's said on Monday, warning that a financial or a commodity "shock" may unwind fiscal improvements.

S&P said the government's efforts to rein-in spending indicated the high priority of fiscal prudence, but warned that spending on subsidies and heavy government debt remained concerns.

"Structural fiscal weaknesses continue to be vulnerabilities of Indian sovereign creditworthiness," S&P credit analyst Kim Eng Tan said, reaffirming India's BBB- sovereign credit rating with a "stable" outlook.

"Although India's budgetary performances have strengthened in recent years, its hard-won fiscal improvements could yet unwind because of a financial or commodity shock," Tan added.

Last week, Moody's raised India's outlook to "positive", which brought it a step closer to an upgrade of the credit rating.

Photograph: Babu/Reuters

Get Rediff News in your Inbox:
Suvashree Dey Choudhury and Neha Dasgupta
Source: source
© Copyright 2020 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
SHARE THIS STORY 

Moneywiz Live!