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S&P says India's high fiscal gap a significant rating constraint

Source : REUTERS
Last Updated: Tue, Dec 11, 2012 12:30 hrs
The Standard and Poor's building in New York

The Indian government's bloated fiscal deficit and the heavy debt burden are the 'most significant rating constraints' for Standard & Poor's, the ratings agency said.

The current government's fiscal deficit target of 4.5 percent of the gross domestic product of 2014 may be beyond its reach, S&P said in a release on Tuesday.

S&P expects only modest reforms in the government's finances as well as in the public sector due to the general elections in May 2014, it said.

India has a BBB-minus rating from S&P, the lowest investment grade rating among the so-called BRIC economies.

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