Standard & Poor’s considers chances of a credit ratings downgrade for India higher than for Indonesia, Bloomberg News reported on Tuesday, citing comments made by an analyst of the credit rating agency at a briefing in Seoul.
S&P analyst Kim Eng Tan also said there was more than a one-in-three chance for India rating cut within two years, according to Bloomberg.
S&P has a “BBB-minus” rating on India with a “negative” outlook. A downgrade would push Asia’s third largest economy to “junk” status.
S&P rates Indonesia at “BB-plus.”
The Indian rupee touched a session low of 68.80 to the dollar after the news.