NEW DELHI: Rating agency Standard & Poor's (S&P) on Friday maintained India's sovereign ratings at BBB- with stable outlook. "S&P Global Ratings affirmed its unsolicited long and short-term foreign and local currency sovereign credit ratings on the Republic of India at 'BBB-/A-3'. The outlook is stable," the agency said in a statement.

It said the stable outlook reflects its view that, over the next two years, growth will remain strong, India will maintain its sound external accounts position, and "fiscal deficits will remain broadly in line with our forecasts."

"Upward pressure on the ratings could build if the government's reforms markedly improve its net general government fiscal out-turns and so reduce the level of net general government debt. Upward pressure could also build if India's external accounts strengthen significantly," S&P said in the statement.

"Downward pressure on the ratings could emerge if GDP growth disappoints, causing us to reassess our view of trend growth; if net general government deficits rose significantly; or if the political will to maintain India's reform agenda significantly lost momentum," it added.

The rating stance taken by S&P comes days after Moody's Investors Service raised India's sovereign rating for the first time in over 13 years, saying that growth prospects have improved with continued economic and institutional reforms.

Boosting investor sentiments, US credit rating agency Moody's on November 17 upgraded India's sovereign rating to Baa2 from its lowest investment grade of Baa3 after 13 years, a development Finance Minister Arun Jaitley said was "an extremely encouraging" global recognition of the structural reforms of last three years. India Inc too lauded it.