S&P says India’s rating may be pressured if polls end in hung parliament
S&P says rating will definitely come under pressure if the government is unable to effect reforms
India’s sovereign rating may come under pressure if the general elections due by May next year end up with a hung parliament or with a government unable to push through reforms, Standard and Poor’s (S&P) said on Wednesday.
“If it is a hung parliament or if the government is unable to effect reforms, definitely by implication the rating will come under pressure," said Terry Chan, credit analyst at Standard and Poor’s during a teleconference with reporters.
S&P has a “negative" outlook on India’s sovereign ratings, meaning any downgrade from its current “BBB-minus" would place the country’s debt in so-called “junk". Reuters
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