India's investment and economic growth have slowed, and its current account deficit has widened, resulting in a weaker medium-term credit outlook. Standard&Poor's expects the government to face headwind in implementing policy measures to improve its fiscal and macroeconomic parameters in the near future, given the current unfavorable political environment. We are revising the outlook on the long-term ratings on India to negative to reflect at least a one-in-three likelihood of a downgrade if the external position continues to deteriorate, growth prospects diminish, or progress on fiscal reforms remains slow. We are affirming our 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. On April 25, 2012, Standard&Poor's Ratings Services affirmed the 'BBB-' long-term and 'A-3'
