LONDON (Standard & Poor's) Aug. 7, 2001--Standard & Poor's today lowered its long-term local currency sovereign credit rating on the Republic of India to triple-'B'-minus from triple-'B'. At the same time, Standard & Poor's affirmed its double-'B' long-term and 'B' short-term foreign currency sovereign credit and 'A-3' short-term local currency sovereign credit ratings on the republic. The outlook on both long-term ratings was revised to negative from stable. The local currency rating downgrade reflects unchecked budget deficits and rising domestic indebtedness. India's general government budget deficit, which includes both the central and state governments, is likely to exceed 10% of GDP in the current year. General government debt could approach 70% of GDP, or more than 400% of revenues--higher than
