Following Standard & Poor’s warning last week that India could face another downgrade moving the country below an investment-grade rating, U.S. Ambassador to India Nancy Powell told Asia Society that the move doesn’t take into consideration the whole range of reforms India has undertaken to attract investors. Powell said the downgrade would be “a setback for India’s hopes to continue to grow at the 8-9 percent rate.”

India was downgraded in April to negative from stable by Standard & Poor’s, who said there was a one-in-three chance of a further downgrade in the upcoming two years.

Powell also discussed India’s role in Afghanistan, India-China relations and challenges in U.S.-India cooperation.