Fitch revises India's sovereign rating outlook to negative from stable

Retains ratings at lowest investment grade

Fitch Ratings has revised the outlook on India's sovereign ratings to negative from stable but retained the ratings at the lowest investment grade. Earlier, Standard & Poor's retained the ratings and outlook on India while Moody's Investors Service downgraded the ratings but maintained the outlook. 

Fitch expects economic activity to contract by five per cent in the current financial year from the strict lockdown measures imposed since 25 March 2020, before rebounding by 9.5 per cent during the next year. 

The rebound will mainly be driven by a low-base effect. 

"Our forecasts are subject to considerable risks due to the