S&P threatens to lower India's credit rating

June 11, 2012 19:56

Global agency Standard and Poor's today threatened to downgrade India's credit rating to 'speculative grade', saying the roadblocks for reforms are on account of division of roles between Sonia Gandhi and 'unelected' Manmohan Singh.

The crux of the current political problem for economic liberalisation is the nature of leadership within the central government and not 'obstreperous' allies or an 'unhelpful' opposition, it said.

"Slowing GDP growth and political roadblocks to economic policy making could put India at risk of losing its investment grade rating," the S&P said in its report --'Will India Be The First BRIC Fallen Angel?'

On its part, the government said that it is taking steps to contain fiscal deficit and the Current Account Deficit.

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