On September 19, 2002, Standard & Poor's lowered its local currency sovereign credit ratings on the Republic of India. The long-term local currency sovereign credit rating was lowered to double-'B'-plus from triple-'B'-minus, and the short-term local currency sovereign credit rating to single-'B' from 'A-3'. Standard & Poor's also affirmed its 'double-B' long-term and single-'B' short-term foreign currency sovereign credit ratings on the republic. The outlook on both the long-term ratings remains negative. The local currency downgrade reflects the government's growing Indian rupee debt burden and its inability to stanch the financial weakening of the public sector. India's national government, a coalition of two-dozen political parties, has been unable to contain its growing budget deficit, expected to reach 6% of GDP
