MUMBAI International ratings agency Standard & Poor's said on Friday that India's 2008/09 budget was largely in line with expectations and more work needed to be done for upgrading ratings.
"The challenges to India's ratings in the future comes from the implementation of the sixth pay commission, slower growth and potential expenditure overruns," Sani Hamid, director at S&P in Singapore, told Reuters.
S&P upgraded India's sovereign rating to BBB-/Stable in January 2007, the first time the country has been on the lowest rung of investment grade in more than a decade.
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State Bank of India (SBI) reported its sharpest quarterly profit drop in five years on Friday but cheered investors by saying that fewer than feared of its loans risked turning sour. Read