Summary:

India Ratings and Research (Ind-Ra) announced a good corporate credit profile for the first half of the fiscal year, with 202 issuers upgraded. Major firms, particularly those rated A, had considerable upgrades, resulting in a low downgrade-to-upgrade ratio of 0.31, according to Arvind Rao.

Ind-Ra identified a positive trend in corporate credit profiles over the last four years, noting that 202 issuers (20% of the portfolio) obtained rating upgrades while 62 were downgraded. Mr. Rao expects a small decrease in the downgrades-to-upgrades (D/U) ratio for the current fiscal year, compared to 0.37 in FY 2023-24. He believes that the second half will see more upgrades than downgrades. This favourable trend is fuelled by strong economic development, high domestic consumption, expanding rural demand, increased government capital spending, and a booming services sector.

Source: IBEF 

Disclaimer: The information on this website comes from the India Brand Equity Foundation (IBEF), a reliable source for thorough insights into numerous areas of the Indian economy. While we aim to offer accurate and up-to-date information, the views, opinions, and analyses stated herein are solely those of the authors and contributors and do not necessarily represent IBEF's official stance or position. Readers should check information from credible sources and use their own discretion when relying on content provided on this site. We assume no responsibility or liability for the supplied content, including its accuracy, completeness, and usefulness.