India Inc’s credit profile moderates YoY in Apr-Sep, says CRISIL

India Inc’s credit profile improved in the April to September period, compared with the preceding six months, but moderated when compared to the same period last year, domestic rating agency CRISIL said on Monday.

It further said the rupee depreciation, rising interest rates and tariff wars pose a risk for Indian companies in future. India Inc’s credit ratio, which is the number of upgrades to downgrades, stood at 1.68 times in the first half of fiscal year 2018-19, compared with 1.88 times in the first half of the previous fiscal year and 1.45 times in the preceding six months, according to CRISIL.

The debt-weighted credit ratio, which is the total quantum of debt upgraded to the one downgraded, stood at 1.20 times for the April to September period, against 1.53 times in the year-ago period and 3.19 times in the preceding six months, it added.

However, its smaller rival Icra said its rating actions in the first half point out to an increase in the downward rating pressure on investment grade entities. “The credit quality pressures on investment grade entities intensified. The just-concluded half of FY19 saw 45 investment grade ratings being downgraded to the on-investment grade at an annualised rate of 4.3 per cent, the highest proportion in the past five years,” said Anjan Ghosh, chief rating officer, Icra.