A picture shows the entrance of Fitch ratings agency on Aug 8, 2011 in Paris. (MIGUEL MEDINA / AFP)

NEW DELHI – The credit rating agency Fitch Ratings on Friday revised the outlook on India's Long-Term Foreign-Currency Issuer Default Rating to stable from negative, while retaining the "BBB-" rating.

"The outlook revision reflects our view that downside risks to medium-term growth have diminished due to India's rapid economic recovery and easing financial sector weaknesses, despite near-term headwinds from the global commodity price shock," Fitch said in a statement.

Fitch, however, cut the economic growth forecast to 7.8 percent for the current fiscal year (April 2022 to March 2023) from 8.5 percent it predicted in March due to the inflationary impact of the global commodity price shock.

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The rating agency expects inflation to remain elevated in the following fiscal year at 6.9 percent due to a sharp rise in global commodity prices and underlying demand pressures.