No, India not strong enough yet: S&P's status quo cools Moody's upgrade

S&P's position, taking cognizance of the still vulnerable fiscal scenario, appears more realistic than Moody's optimism.

Standard & Poor’s stuck with its “BBB-minus” sovereign rating and “stable” outlook for India on Friday, declining to follow Moody’s recent decision to upgrade the country’s rating, citing low income levels, high debt and weaker government finances. Moody’s Investors Services had a week ago upgraded India’s credit rating to “Baa2” from “Baa3”, one notch higher than S&P’s current rating, citing progress on economic and institutional reforms would lift the country’s growth potential. This author discusses whether India has grown strong enough to have crossed the debt burden.

In what could be considered as a less enthusiastic view on India’s debt