One of the big three global credit rating agencies, Fitch has maintained the outlook on India’s sovereign rating at ‘BBB’- stable. The rating agency has said in its statement that India’s growth is looking strong.
Fitch Ratings said in a statement on Tuesday that India’s long-term foreign currency issuer default rating has been retained at ‘BBB’ with a stable outlook. Fitch has also said that strong growth potential is an important reason for the sovereign rating. The agency said that India’s growth looks strong.
The agency has said that India’s rating reflects stronger growth and external financial resilience than other countries, which have helped the Indian economy weather major external shocks of the past year.
It is noteworthy that international rating agencies decide ‘sovereign ratings’ on the basis of the ability of the governments of different countries to repay the debt. For this, it considers the economy, market and political risk as the basis. Fitch has placed India’s rating at ‘BBB-‘, the lowest investment grade rating, since August 2006. Sovereign ratings are generally determined by Standard & Poor’s (S&P), Fitch and Moody’s investors around the world.
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