A rebound in demand, upswing in exports, deleveraging, and sops by the government boosted India Inc’s credit ratio.
The upgrade rate increased to 15.4% in the second half of FY22, from 12.5% in the first, as per Crisil Ratings.
The downgrade rate is half the average in the past decade. Interest cover has improved, and a strong run of primary issuances in equity markets has supported the balance sheet.
Going forward, the credit ratio could moderate because demand, and profitability could soften because of higher commodity prices and winding down of Covid relief measures.
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