Ratings agency Fitch, which in June cut its outlook of the country’s sovereign rating to negative, said the macroeconomic situation continues to remain weak with slower growth and inflationary pressures.
All the rating agencies have revised their outlook on the country in the present period of heightened economic worries and “policy paralysis”. A host of private analysts have revised downwards GDP forecast for the current fiscal to a low of 5.1 per cent.
Fitch’s rival S&P had threatened to downgrade the rating to junk status, calling for immediate course-correction. According to a recent report, the finance ministry is planning to present the country’s strengths to the rating agencies when they come calling this month, to avoid downgrade.
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