On Feb. 2, 2005, Standard & Poor's Ratings Services raised its long-term foreign currency rating on the Republic of India by one notch to 'BB+', and affirmed its 'BB+' long-term local currency, and short-term ratings. The outlook is stable. The upgrade on the foreign currency reflects India's improved external position and growth prospects. India's external balance sheet has strengthened markedly, due to reserves accumulation and prudent debt management, which should lower the external liquidity risk from its fiscal vulnerability. As illustrated by its strengthening liquidity, India's resilient external position--stronger than all other sovereigns in the 'BB' rating category--is likely to be maintained in the coming years. Its foreign exchange reserves, now more than 20x short-term debt and 6x gross financing
