NEW DELHI : Standard and Poor’s (S&P) on Friday said a serious outbreak of covid-19 in India could negatively affect its expectations of a quick recovery in the country’s growth trajectory, and exert downward pressure on its sovereign rating.The rating agency on Wednesday retained the lowest investment grade of BBB- for India, with a stable outlook, expecting its fiscal position to stabilize, and start recovering in 2021. “Risks include a serious local epidemic, enduring financial and corporate distress in India, and long-lasting global economic malaise.
Such scenarios may involve a detailed review of our sovereign assumptions. Expectations for a strong rebound may change if this crisis has a more chronically debilitating effect on Indian.