According to recently released report by Standard & Poor's Ratings Services, titled "Will India Be The First BRIC Fallen Angel?", the Indian government's reaction to potentially slower growth and greater vulnerability to economic shocks could largely determine whether the country can maintain an investment-grade rating or become the first "fallen angel" among the BRIC nations (which also comprise Brazil, Russia, and China).

The 'BBB-' long-term sovereign credit rating on India is currently one notch above speculative grade. In April S&P cut India's rating outlook to negative from stable, citing the slow pace of fiscal consolidation, the worsening external sector situation, inflationary pressures and the sluggish pace of economic growth.

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