S&P Global Ratings Warns of Economic Impact from Rising Oil Prices
S&P Global Ratings indicates that rising crude oil prices due to West Asian conflict could impact India's economic growth. If oil averages $130 per barrel in 2026, growth may slow by up to 80 basis points in FY27. Corporate profitability could decline, with Ebitda expected to fall by 15-25%. The banking sector may face worsening asset quality, with weak loans rising to 3.5%. Despite these risks, S&P does not foresee immediate changes to India's sovereign, corporate, or banking ratings. The agency noted that over 40% of Indian corporate debt is investment grade, reducing default risk. S&P's base case assumes Brent oil will average $85 per barrel for the rest of 2026 and $70 for 2027, while acknowledging potential supply-chain disruptions.
Published 21 hours ago • 14 Apr 2026, 08:04 PM IST