New Delhi, Nov 2 (IANS): International rating agency Standard & Poor's here on Wednesday affirmed "BBB-/A-3" rating with stable outlook for India.

"We are affirming our 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. The stable outlook balances India's sound external position and inclusive policy making tradition against the vulnerabilities stemming from its low per capita income and weak public finances," it said.

"Improvements in policy making continue to strengthen the prospects for India's economic and fiscal performance. Wide fiscal deficits, a heavy debt burden, and low per capita income nonetheless detract from the sovereign's credit profile," it added.

The ratings on India reflect the country's sound external profile and improved monetary credibility, the agency said.

"India's strong democratic institutions and a free press, which promote policy stability and predictability, also underpin the ratings. These strengths are balanced against vulnerabilities stemming from the country's low per capita income and weak public finances," it said.