Mumbai: Fitch and Moody's said India's credit rating was unlikely to be impacted by the recently strong foreign investor sales of shares and bonds over concerns about a tax on overseas funds, despite the uncertainty being created over the country`s tax regime.
"India`s external balances are strong relative to peers on some accounts, and can withstand the current outflows, for instance, due to the high level of foreign-exchange reserves," Thomas Rookmaaker, director at Fitch`s Asia-Pacific Sovereign Group, wrote in an email to Reuters.
Fitch affirmed its "BBB-minus" and "stable" outlook on India last month.
Meanwhile, Moody`s, which revised India`s "Baa3" sovereign rating outlook to "positive" from "stable" last month, said its outlook reflects a 2-5 year horizon, rather than near-term growth outlook.
India`s positive outlook "is about the next two to three to five years," Moody`s sovereign rating analyst Atsi Sheth told Reuters in a telephone interview.
"If reforms are implemented as planned, that would be quite positive."
