NEW DELHI – Ratings agency Fitch on Tuesday affirmed India’s long-term issuer default ratings (IDRs) at ‘BBB-‘ with a stable outlook, and its short-term IDRs at ‘F3’.
Fitch stated that India’s macroeconomic stability and improving policy credibility would underpin the country’s growth, despite near-term macroeconomic headwinds stemming from an energy shock due to conflict in the Middle East.
“There are residual risks from uncertainty related to the U.S.-Iran conflict, given India’s position as a large net energy importer, but we do not expect a durable risk to growth prospects,” the agency said.
However, Fitch added that high deficits and lagging structural metrics, such as governance indicators and gross domestic product per capita, were constraints to India’s rating.
