New Delhi: Japan Credit Rating Agency (JCRA) has left unchanged its BBB+ ratings for India that reflect a stable outlook on the country's foreign and local currency long-term senior debts, the government said Thursday.

After a review Aug 19, the agency concluded that in the medium to long term, the Indian economy has high potential to grow faster than seven percent annually, a government statement said.

The agency felt that the stability of India's financial system has been enhanced following the progress made in disposal of non-performing loans partly due to a revision of related legislation.

The agency said the country's foreign liquidity position has been maintained at comparatively sound levels.

JCRA said the planned increase in tax revenues will continuously hold the key to achieving the fiscal deficit target, the statement said.

The agency sees no immediate concern over India's foreign currency liquidity position, given its lower debt service ratio and huge foreign exchange reserves, which now rank fourth in the world.

Earlier, Fitch Ratings Agency, in a review of the sovereign rating of India July 15, had also affirmed its previous rating for India at BBB minus on foreign and local currency issuer default rating, the statement said.

Ficht had, however, revised the outlook on India's long-term local currency issuer default rating (IDR) from stable to negative.

Thus, what the agency had done is only a revision in the outlook for India's local currency, the statement said.

A rating outlook only indicates the direction a rating is likely to move over a one to two-year period.

Outlooks may be positive, stable or negative. A positive or negative rating outlook does not imply that a rating change is inevitable, the statement said.