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News Topical, Digital Desk : S&P Global Ratings on Friday upgraded the ratings of top 10 financial institutions. These include SBI, HDFC Bank and Tata Capital. A day earlier, the US-based agency had raised India's long-term sovereign credit rating. S&P said, "India's financial institutions will continue to benefit from the country's strong economic growth momentum. S&P said that these institutions will benefit from their domestic focus and structural reforms in the system such as recovery of bad loans."

S&P has raised the long-term issuer credit ratings of seven Indian banks ICICI Bank, HDFC Bank, Axis Bank Ltd, Kotak Mahindra Bank, Union Bank of India, and Indian Bank, and three financial companies Bajaj Finance, Tata Capital, and L&T Finance.

Reasons given S&P said "We expect India's banks to maintain adequate asset quality, good profitability, and sound capitalization over the next 12-24 months, although stress will remain in some sectors." The agency also said that the credit risk in the system has reduced. On Thursday, S&P Global Ratings raised the credit ratings of Oil and Natural Gas Corporation Limited (ONGC), Power Grid Corporation of India Limited, NTPC Limited, and Tata Power Company Limited from 'BBB-' to 'BBB'. Their outlook has been kept stable. 

India's credit rating upgraded after 18 years S&P on Thursday upgraded India's credit rating to 'BBB' after more than 18 years. The agency expects that India's strong economic foundation will maintain the growth momentum in the next 2-3 years. Credit rating agency S&P Global has cited economic resilience and sustained fiscal consolidation as the reason behind this upgrade. S&P said that the stable outlook reflects the expectation that India's policy stability and high infrastructure investment will strengthen long-term growth prospects. Apart from raising the long-term sovereign credit rating to 'BBB', India's short-term rating has also been increased from 'A-3' to 'A-2', while the outlook on the long-term rating has been kept stable. 


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