Credit rating agency Fitch Ratings has said it has affirmed India's long term foreign and local currency issuer default ratings (IDR) at "BBB-".
According to it, the outlooks on the long term IDRs are stable.
"The Country Ceiling is affirmed at 'BBB-' and the Short-Term Foreign-Currency IDR at 'F3'," Fitch Ratings said in a statement.
The agency said that the affirmation of India's sovereign ratings balances a strong medium term growth outlook and favourable outside balances against a weak fiscal position and still difficult business atmosphere.
"However, the latter is likely to gradually improve with implementation and continued broadening of the government's structural reform agenda," the agency said.
As per Fitch Ratings, India shows one of the highest real gross domestic product (GDP) growth rates in the sovereign space.
"Its five-year average growth is among the 10 highest of all rated sovereigns and the 7.6 per cent real GDP growth in the financial year ended 31 March 2016 (FY16)," the statement said.
Fitch Ratings predicts real GDP growth to marginally accelerate to 7.7 percent in FY17 and 7.9 per cent in FY18.