India’s Investment Grade Rating at Risk as S&P Cuts Outlook

India’s sovereign credit outlook was lowered to negative from stable by Standard & Poor’s, taking the nation a step closer to junk status and dealing a further blow to Prime Minister Manmohan Singh’s economic agenda.

“India’s investment and economic growth have slowed, and its current-account deficit has widened,” S&P said in a statement today, reaffirming its BBB- long-term India rating, the lowest investment grade. “We are revising the outlook on the long-term ratings on India to negative to reflect at least a one-in-three likelihood of a downgrade.”