Standard and Poor's (S&P) has said that the risk factors for India's sovereign credit rating could become negative this year.

S&P said that the rating might move to negative due to the issues faced by the country on domestic and global fronts. The rating agency pointed out that it is unlikely to or revise its `stable' outlook on the investment grade `BBB-' long-term sovereign credit rating for the country in the near future.

"India has been grappling with a political gridlock and the government's ability to implement measures to improve economic growth and fiscal prudence will be vital to boosting confidence," said S&P credit analyst Takahira Ogawa.

The country is facing the problems with high inflation, weak government fiscal position and slower economic growth. On the other hand, international trends like the continuing uncertainty in the Eurozone might effect the country.

Ogawa said that the government's weak policy formulation and implementation and other negative factors may push the company to the tipping point and change the rating for the company.

The report titled "Several Factors Could Weigh On India's Current Stable Sovereign Rating In 2012" said that high inflation levels, weak government fiscal position as well as slower growth rate has increased risks for the company.