S&P says India's fiscal, econ reforms to determine credit rating

MUMBAI Fri May 16, 2014 6:28pm IST

Labourers unload grocery items from supply trucks at a wholesale market in Kolkata May 15, 2014. REUTERS/Rupak De Chowdhuri

Labourers unload grocery items from supply trucks at a wholesale market in Kolkata May 15, 2014.

Credit: Reuters/Rupak De Chowdhuri

Related Topics

MUMBAI (Reuters) - The fiscal and economic reforms taken by India's new government in the next two to three months will have "significant implications" on India's sovereign credit rating, Standard & Poor's Ratings Services said on Friday.

S&P added the next government would need to regain "fiscal prudence in a sustainable way," such as by implementing a goods and services tax to help stabilise government revenues.

"What the next government says and does in the coming months is crucial to boosting confidence in the policy settings and the economy," S&P credit analyst Takahira Ogawa was quoted as saying in the statement.

"If confidence rises, investment and consumption in India could strengthen, after being held back by the uncertainty surrounding the election."

The S&P statement came after the Bharatiya Janata Party and its allies were headed for the biggest victory the country has seen in 30 years.

S&P is the only of the three major credit agencies to have India with a "negative outlook" for its "BBB-minus" rating, meaning any downgrade would send the country to below investment grade.

(Reporting by Suvashree Dey Choudhury; Editing by Rafael Nam)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Culling Plans

REUTERS SHOWCASE

Root Out 'Bad Apples'

Root Out 'Bad Apples'

RBI chief calls for cleaning up of banking system.  Full Article 

Android One

Android One

Google launches $105 Android One; eyes low-price smartphone boom.  Full Article 

India-Vietnam Ties

India-Vietnam Ties

India tightens Vietnam defence, oil ties ahead of China Xi's visit.  Full Article 

Cognizant Deal

Cognizant Deal

Cognizant to buy TriZetto for $2.7 billion to boost healthcare business  Full Article 

Inflation Eases

Inflation Eases

Aug WPI inflation eases to near five-year low of 3.74 percent  Full Article 

Kashmir Floods

Kashmir Floods

Disease threatens as Kashmir flood waters turn fetid  Full Article 

Hepatitis Drug

Hepatitis Drug

Gilead licenses hepatitis C drug to Cipla, Ranbaxy, five others   Full Article 

Trade Deficit

Trade Deficit

Exports growth slows to 2.4 pct in August  Full Article 

Battle for Heineken

Battle for Heineken

Four generations on, Heineken family won't loosen grip  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage