India's sovereign rating downgrade to 'junk' status unlikely: Standard Chartered

Giving a big sigh of relief, Standard Chartered negated the possibilities of a rating downgrade for India to junk status. 

"We do not see a high probability of an immediate downgrade but rating agencies will closely monitor the appetite for corrective action," said a report by Standard Chartered. The Global banking major states that it is unlikely of a sovereign rating downgrade to the junk status for India considering the revival in the sentiment. 

However, it asked the country to continue its effort to come out with concrete steps to revive its economic growth and chalk out measures to consolidate the fiscal balance in the next few months. The bank outlined the factors that could lead a possible downgrading for India in coming times that include lack of revival in investment demand, which can lead to sustained lower growth rates and no progress on reducing the fuel, food and fertiliser subsidies which are leading to wider fiscal deficit, said the bank in a statement. Meanwhile considering the current scenario, the bank estimated the country to post a growth of 6.2 per cent in this fiscal.

Source: Dion Global Solution News Wire