Here's all you wanted to know about the credit rating outlook:
* Standard & Poors, while raising Indias credit rating outlook to
stable, cautioned that threats to outlook remain.
* Currently India is rated at BBB-/A-3, which corresponds to the lowest investment rating, a notch above junk status.
* In credit rating parlance, a negative outlook means the countrys weak fiscal position will constrain the governments policy measures and may lead to a lower rating. A stable outlook shows that the countrys fiscal consolidation efforts will restore the governments policy flexibility.
* However, another global rating agency, Fitch, has said that the decision to de-allocate coal blocks will impact the credit ratings of power and steel companies negatively.
* At present, India is rated as BBB- with stable outlook by Fitch and Baa3 by Moodys.
- Improved political setting has created a conducive environment for reforms
- Strong external profile with little external debt and sufficient reserves with RBI to finance borrowings
- Low current account deficit due to restriction on gold and low domestic investments
* Low per capita GDP of $1,550 narrows the tax and base considerably
* Weak public finance with large fiscal deficit and extensive subsidy bills
* 90% of general government debt is rupee denominated, further constraining fiscal space