Fitch retains India's sovereign rating at the lowest investment grade

Despite Moody's upgrade, Fitch Ratings on Friday retained India's sovereign rating at the lowest investment grade.

It pointed to weakness in fiscal consolidation and the "difficult but improving" business environment. And, mentioned the Rs 130-billion fraud at Punjab National Bank and said the recent capital infusion by the government into state-owned lenders would be absorbed by resolution  of their bad debts, rather than fresh lending.

With this, two of the three global rating agencies, Fitch and S&P, have kept India at the bottom of the investment grade. Fitch also retained its earlier outlook on India's ratings at 'stable'. 

The finance ministry had argued