Standard & Poor's (S&P) today said it is in talks with the Indian government after the Finance Ministry sought to know the rationale behind the global credit rating agency downgrading country's outlook to 'negative' from 'stable'.
"We are in continuous dialogue with the Government of India on the rating of India sovereign and will continue to discuss rating issues with them directly," said Elena Okorotchenko, Senior Director, Corporate and Government Ratings, Asia, S&P.
On February 24, S&P had downgraded its outlook on the country's long-term sovereign credit rating to negative from stable. It cited worsening government finances that could raise the overseas borrowing costs for companies and weaken the Indian currency.
"Governments, companies, banks and other rated entities often have issues with negative rating actions or outlook changes. We do listen to their arguments/objections and take them into account in our rating analysis," said Okorotchenko in an e-mailed reply.
S&P has a BBB-minus long-term sovereign rating for India, which is the lowest rung of investment grade. In its research note, it had said the outlook revision reflected "deterioration" in the country's fiscal position to a unsustainable level in the medium term.