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Fitch affirms India forex rating at 'BBB-'

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  28 April 2018 12:00 AM GMT

New Delhi, April 27: Credit rating agency Fitch on Friday has affirmed India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB-’ with a stable outlook.

“India’s rating balances a strong medium-term growth outlook and favourable external balances with weak fiscal finances and some lagging structural factors, including governance standards and a still-difficult, but improving, business environment,” were the key drivers for the rating, Fitch said in a statement here.

A favourable economic growth outlook continued to support India’s credit profile, Fitch said, even though real GDP growth fell to 6.6 per cent in the fiscal year ended March 31, 2018 (FY18) according to official preliminary estimates, from 7.1 per cent in FY17.

Fitch forecasts growth to rebound to 7.3 per cent in FY19 and 7.5 per cent in FY20, as a temporary drag will fade from the withdrawal of large-denomination bank notes in November 2016 and the introduction of a Goods and Services Tax (GST) in July 2017. (IANS)

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