New York, Sept 20: International credit rating agency Standard and Poor`s on Thursday downgraded India`s long-term and short term local currency rating on the ground of poor finances of public sector and growing debt burden. Continued large fiscal deficit with slow pace of economic reforms would lead to a further rating downgrade, the company said in a release here.
The long term sovereign local rating has been lowered to "BB+" from "BBB-" and the short-term local currency sovereign credit rating to B from A-3, the release said.

However, the company has affirmed the BB long term and B short-term foreign currency sovereign rating for India.
The company`s Managing Director John Chambers said local currency downgrade reflects the government`s growing Indian rupee debt burden and its inability to stem the financial weakening of the public sector.
India Central government, a coalition of two dozen political parties has been unable to contain its growing budget deficit, expected to touch six per cent of the GDP in the current fiscal, he added.
Inability of the country`s leadership to implement the announced reform policies in a timely manner contributes to India`s falling credit worthiness, Chamber claimed. Bureau Report