India's long-term rating was affirmed at 'BBB-' with a stable outlook while the short-term rating was held at 'A-3'.
"The stable outlook reflects our expectation that India's economy will recover following the resolution of the COVID-19 pandemic," analysts at the rating agency wrote.
"It is painful to note, in this crucial time... in many parts of the country, both government and public are complacent and engaged in mass gatherings without following COVID protocols," the IMA said.
The Reserve Bank of India earlier this month warned that high energy prices could stoke inflation while cutting the growth forecast to 9.5% from 10.5% for the current fiscal year beginning April.
Annual retail inflation rose 6.30% year-on-year, up from 4.29% in April. Analysts had forecast retail inflation at 5.30%.
The benchmark 10-year bond yield closed at 6.08%, down 5 basis points on the day after earlier rising to 6.18%, its highest since April 7.
On Friday, RBI sold bonds worth 113.27 billion rupees, less than half of what it set out to raise for the government and rejected all bids at the sale of the 10-year bond.