Fitch downgrades India's sovereign credit rating outlook to negative

Retains ratings at lowest investment grade

Fitch Ratings revised its outlook on India's sovereign ratings on Thursday to ‘Negative’ from ‘Stable’, citing a weakened growth outlook and challenges from a high public debt burden due to the Covid-19 pandemic. Fitch retained its rating at ‘BBB-‘, the lowest investment grade. This comes just weeks after Moody’s cut its rating for India.

As things stand, all three major global ratings agencies – Moody’s, Fitch and Standard & Poor’s – have the lowest investment grade rating on India. Fitch and Moody’s have a negative outlook while S&P has a ‘stable’ outlook which it reaffirmed days ago.

“The coronavirus pandemic