<h1>Ratings agencies affirm and upgrade sovereign credit to BBB/BBB- citing 6.5% GDP growth and GST reform prospects</h1> A ratings agency affirmed the sovereign rating at 'BBB-' with a stable outlook, citing robust growth and solid external finances and projecting GDP growth of 6.5% for the fiscal year ending March 2026. The agency noted proposed goods and services tax reforms - a two-tier 5% and 18% structure plus a 40% rate for a small set of goods, replacing current 12% and 28% slabs - could support consumption. It flagged high deficits, elevated debt versus peers and lagging governance and per-capita metrics as credit weaknesses. Another ratings agency recently upgraded the sovereign by one notch to 'BBB'.