Highest Debt Among Peers Keeps India Outlook Negative at Fitch
- India’s government debt to GDP ratio was 89.6% in last FY
- Higher debt levels may crowd out financing for private sector
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Fitch Ratings retained its negative outlook on India’s sovereign rating that’s barely above junk grade, reflecting concern the country will find it challenging to cut its high public debt.
That’s in contrast with Moody’s Investors Service and S&P Global Ratings, which both have a stable outlook on India’s sovereign score. Fitch highlighted that the country’s general government debt at 89.6% of gross domestic product in the financial year ended March 31 is the highest of similar rated emerging-market sovereigns, in a note published late Tuesday.