India Inc losing on financial health
Its credit ratio, or the proportion of rating upgrades to downgrades, moderated in H1 and is set to dip marginally further in H2: Crisil
♦ Rating agency rated 6,500 cos
♦ Credit ratio moderated to 1.91 from 2.19 in H1
♦ However, it said credit ratio will stay above 1
♦ It means the number of upgrades will outpace the downgrades
Mumbai: India Inc’s financial health measured by the credit ratio, or the proportion of rating upgrades to downgrades, moderated in the first half of current fiscal year and is set to dip marginally further in the second half, Crisil Ratings said on Tuesday.
Crisil, which rates 6,500 companies, however, made it clear that the credit ratio will stay above 1 going forward as well, which means the number of upgrades will outpace the downgrades. In April-September FY24, there were 443 upgrades as compared to 232 downgrades, the agency said, adding that the credit ratio moderated to 1.91 from 2.19 in the preceding six months.
It said the upgrades are much higher than the decadal average, but the downgrades are inching up lately, largely due to difficulties faced by export-linked sectors due to slowing growth in the world. Crisil’s Managing Director Gurpreet Chhatwal said the moderation in the first half was along expected lines, and the government’s infrastructure push and spending are helping corporate India report positive credit ratios.