Fitch raises India's Rating to 'Investment' grade
Fitch Ratings on Monday unexpectedly raised Indiaâ€™s sovereign foreign and domestic currency ratings to investment grade, citing progress in the fiscal consolidation process, a â€œstrong external balance sheet and an impressive growth storyâ€ as key factors prompting the upgrade.
â€œFiscal consolidation is at last taking hold in India, reinforced by the impressive growth story and Indiaâ€™s strong external balance sheet,â€ said Paul Rawkins, senior director at Fitch. â€œPublic finances are still weak, but they are no longer an insuperable constraint on this rating.â€
With Moodyâ€™s already rating India as investment grade and with Standard & Poorâ€™s ranking it just one notch away from prime status, with a positive outlook, the news will be a fillip to reformers in New Delhi arguing for faster progress towards full capital account convertibility.