Fitch Ratings revised its outlook on India's sovereign ratings on Thursday to ‘Negat
Fitch Ratings revised its outlook on India’s sovereign ratings on Thursday to ‘Negative’ from ‘Stable’, citing a weakened growth outlook and challenges from a high public debt burden due to the Covid-19 pandemic. Fitch retained its rating at ‘BBB-‘, the lowest investment grade. This comes just weeks after Moody’s cut its rating for India.
As things stand, all three major global ratings agencies – Moody’s, Fitch and Standard & Poor’s – have the lowest investment grade rating on India. Fitch and Moody’s have a negative outlook while S&P has a ‘stable’ outlook which it reaffirmed days ago.
“The coronavirus pandemic has significantly weakened India’s growth outlook for this year and exposed the challenges associated with a high public-debt burden. Fiscal metrics have deteriorated significantly, notwithstanding the government’s expenditure restraint, due to the impact of the severe growth slowdown on revenue, the fiscal deficit and public-sector debt ratios,” the agency said in a report.