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Fiscal, debt ratios main constraints to rating upgrade: S&P analyst to CNBC-TV18

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Reuters MUMBAI
Last Updated : Sep 26 2014 | 4:35 PM IST

MUMBAI (Reuters) - India's high fiscal and debt to gross domestic product ratios are the main constraints to a sovereign ratings upgrade, Standard & Poor's credit analyst Agost Benard said in an interview to CNBC-TV18.

"Fiscal and debt ratios that India currently has, those are the main rating constraints for India's sovereign ratings and these ratios are considerably worse than other countries with comparable ratings," Agost told the news channel on Friday.

"So those are the areas we are looking at, including a higher trend growth rate," he said.

Benard added that the sustainable changes usually required for a rating upgrade are unlikely in a year.

Earlier today, S&P raised India's rating outlook of "BBB-minus" to "stable" from "negative", saying Prime Minister Narendra Modi government's "strong" mandate would allow it to implement fiscal and economic reforms.

(Reporting by Neha Dasgupta and Suvashree Dey Choudhury; Editing by Prateek Chatterjee)

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First Published: Sep 26 2014 | 4:27 PM IST

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