Significant chance of downgrading India's rating - S&P

MUMBAI, Oct 10 (Reuters) - Ratings agency Standard & Poor's warned on Wednesday about a significant chance of downgrading India's credit rating, reiterating its June stance if growth prospects and external position worsen, or fiscal reforms slow.

However, there is a possibility of India's outlook being revised back to stable if the government goes ahead with steps to reduce structural fiscal deficits, improve the investment climate, and increase growth prospects, it said in a statement.

S&P had downgraded India's rating outlook to negative from stable in April.

India has a rating of BBB-, the lowest investment rating in the so-called BRIC economies.

(Reporting by Neha Dasgupta)