S&P warns India could face junk status

New Delhi, May 19 – India faces at least "a one-in-three" chance of losing its prized sovereign grade rating, global ratings agency Standard and Poor's has warned.

 

The announcement late Friday comes after finance ministry officials have been arguing for a ratings upgrade, saying the government has been taking strong steps to curb India's financial deficit and promote investment.

 

India's BBB-minus investment rating is already the lowest among its BRICS peers Brazil, Russia, China and South Africa, and cutting it to "junk status" would push up the country's hefty borrowing costs as it would signal higher risk. Source : AFP