Ruling out the possibility of rating upgrade, global rating agency Standard & Poor’s (S&P) said improvement in outlook was something which could be considered. As per the rating agency, a rating upgrade at this point is not on the cards, while, improvement in rating outlook was something which could be considered.
Last year in August, the rating agency had revised its outlook on India's long-term credit rating to ‘negative' from ‘stable' with a sovereign rating of ‘BBB-’ which is the lowest investment grade. Last month, the government made a strong defense towards upgrading the sovereign rating to the representatives of S&P’s saying that the recent policy reforms would resolve deficit issues and boost investment in the country.
The government has been meeting rating agencies to improve the country’s outlook, since any lowering in rating grade will take it to junk investment grade, making it difficult for the country to attract foreign investments or the companies to borrow from abroad.