Upgrades dominate H1 India Inc ratings; infra, financials, textiles top sectors | Business News,The Indian Express
Crisil Ratings, in a report Monday, said its credit ratio — upgrades versus downgrades — continues to be high at 5.52 in the first half, underscoring ongoing broad-based improvement in India Inc’s credit quality. The ratio was 5.04 during H1 of FY22.
The improvement in credit ratings in the first half of FY23 was strong domestic demand, better cash flows, healthy financial profile, improving business performance and availability of liquidity, they added.
Crisil Ratings, in a report Monday, said its credit ratio — upgrades versus downgrades — continues to be high at 5.52 in the first half, underscoring ongoing broad-based improvement in India Inc’s credit quality. The ratio was 5.04 during H1 of FY22.
India Ratings & Research (Ind-Ra) upgraded ratings of 159 issuers, while downgrading that of only 40 issuers during H1FY23. Meanwhile, Icra Ratings’ credit ratio stood at 3.3, with the number of rating upgrades at 250 and that of downgrades at 76.
Crisil said the performance of upgraded companies improved significantly over the past three fiscals despite severe pandemic-related disruptions. “Around 35 per cent of all upgrades were from the infrastructure sector (including large realty players). Infrastructure sector is in a unique position of largely being a domestic story and generally decoupled from the global headwinds,” Crisil Ratings MD Gurpreet Chhatwal said.
Over the last few years, increasing share of central counterparties in infra projects has led to more predictable payment cycles providing additional comfort to credit quality, he added.
Rating: 5