S&P retains India's rating at 'BBB-', says fiscal position precarious

Global agency Standard and Poor's on Thursday retained India's sovereign ratings at 'BBB-' with stable outlook, saying the country's GDP is likely to gradually recover towards longer-term trend rates over the next two to three years.

'BBB' rating refers to adequate capacity to the rated entity to meet its financial commitments.

The rating agency, however, pointed out that India's fiscal position remains precarious, with elevated fiscal deficits and net government indebtedness.

Fiscal deficits have exceeded the government's plan, S&P said, adding it expect limited consolidation over the next few years.

"S&P Global Ratings affirmed its 'BBB-' long-term and 'A-3' short-term unsolicited foreign and local