<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>Standard & Poor's said on Monday that India could become the first of the so-called BRIC economies to lose its investment-grade status, sending the rupee and stocks lower, less than two months after cutting its rating outlook for the country.<br><br>"Slowing GDP growth and political roadblocks to economic policymaking are just some of the factors pushing up the risk that India could lose its investment-grade rating," the ratings agency said in a statement issued Monday on a report dated June 8.<br><br>India's sovereign rating is BBB-, the lowest investment grade rating, and in April S&P lowered its outlook on the rating for Asia's third-largest economy to negative from stable.<br><br>S&P said the new report gave further detail as to why India's investment-grade rating could be at risk. The BSE Sensex cut gains after the S&P statement, while the rupee skidded to 55.55 to the dollar from 55.45 earlier after the S&P statement. The benchmark 10-year bond yield showed a more muted reaction, trading down 1 basis point at 8.34 percent from its previous close.<br><br>"While INR and bonds moved on this S&P headline, it may not have been warranted. While the report is new, the content in itself is probably not," said Kumar Rachapudi, fixed income strategist at Barclays Capital in Singapore.<br><br>"The discussion in this report has largely been covered in their previous report when S&P revised outlook in April."<br><br>The two analysts who wrote the report could not immediately be reached for comment.<br><br>India recently posted March quarter GDP growth of 5.3 per cent, its weakest in nine years and far below expectations.<br><br>"Failure to advance with more liberalization might reduce India's long-term growth potential and thus hurt its sovereign rating," the report said.<br><br>The so-called BRIC economies consist of Brazil, Russia, India and China.<br><br>India has the lowest rating from S&P of all the BRIC countries, and is the only one with a negative outlook from the rating agency, it said in the report.<br><br><strong>Markets Down</strong><br>Standard & Poor's said on Monday that India could become the first of the so-called BRIC economies to lose its investment-grade status, sending the rupee and stocks lower, less than two months after cutting its rating outlook for the country.<br><br>"Slowing GDP growth and political roadblocks to economic policymaking are just some of the factors pushing up the risk that India could lose its investment-grade rating," the ratings agency said in a statement issued Monday on a report dated June 8.<br><br>India's sovereign rating is BBB-, the lowest investment grade rating, and in April S&P lowered its outlook on the rating for Asia's third-largest economy to negative from stable.<br><br>S&P said the new report gave further detail as to why India's investment-grade rating could be at risk.<br><br>(Reuters)</p>