The slowdown in India's economic growth is less supportive for the country's sovereign credit ratings, and the government may find it challenging to meet the revenue projections in its 2013-14 budget, an analyst at Standard & Poor's said on Friday.The comments, although not drastically different from the rating agency's previous stance, nonetheless hit Indian shares and bonds, highlighting lingering concerns that the country may lose its investment-grade rating.
S&P rates India at "BBB-minus", one notch above junk, and cut its outlook to "negative" from "stable" last year, denoting a one-in-three possibility of a ratings downgrade.
"Economic support has weakened somewhat," Kim Eng Tan, senior director of Asia-Pacific Sovereign Ratings said during a webcast about global ratings on Friday.
India's economic growth has slowed dramatically to just 4.5 percent in the October-December quarter of 2012 from more than 9 percent in early 2011.
Tan