MUMBAI, April 15 The direction and pace of
policy reforms in India, more than which political party takes
control after elections, will have a bearing on the sovereign
rating, said Standard and Poor's rating agency on Tuesday.
"An important factor is how fragmented the government will
be. The more parties involved in the next coalition government,
the more likely policies will be incoherent and less supportive
of credit attributes," said Kim Eng Tan, sovereign credit
analyst at S&P, in a statement.
The world's biggest-ever election is under way in India,
with Hindu nationalist Narendra Modi, the prime-ministerial
candidate of the Bharatiya Janata Party (BJP), taking on the
ailing ruling Congress party and several regional parties.
Most surveys predict BJP will win the biggest chunk of seats
but fall shy of the halfway mark, forcing them to seek a
coalition with the powerful regional parties. Voting runs until
May 12 and results are due on May 16.
S&P has a BBB- rating on India with a negative outlook and
has warned of the risks of a ratings downgrade in the absence of
structural reforms, fiscal consolidation and if economic growth
(Reporting by Suvashree Dey Choudhury; Editing by Jacqueline