Standard & Poor's today lowered the India's long-term foreign currency sovereign credit rating to double-'B' from double-'B'-plus and its long-term local currency sovereign credit rating to triple-'B' from triple-"B'-plus. The short-term foreign currency rating of single-‘B’ was affirmed. The downgrade reflects fading prospects for meaningful fiscal adjustment, weakening the sustainability of recent economic growth rates and potentially further raising the country’s already high external debt burden. The consolidated government deficit (including State governments) is likely to remain around 8 per cent of GDP annually over the next few years.

PSU divestment backlog to be cleared soon: Sinha

The Finance Minister, Mr. Yashwant Sinha, has announced that the Government proposed to examine and clear the backlog of recommendations by the Disinvestment Commission for strategic sale of PSU shares in the near future. Exuding confidence about the budgetary target of garnering Rs. 5,000 crores from disinvestment during the current fiscal, Mr. Sinha told newspersons that disinvestment of IOC, VSNL and GAIL would take place during 1998- 99, well within the laid-down schedule. The domestic offering of Concor shares would take place by the month-end after the prices were finalised.

UK cement major Blue Circle closing down India office

Blue Circle Industries Plc, UK's cement major, is shutting its India liaison office, which was scouting for investment opportunities in the cement industry here, by this month-end. This decision is based on the "generally tightening world economic conditions and the need to integrate recent substantial acquisitions, primarily consolidation moves in markets where Blue Circle already operates."

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