Corporate sector's interest coverage ratio rises to 2.4 times in Q2FY18

Tracking corporate sector health
Interest cover up, but stress remains. 

The corporate sector's interest coverage ratio has improved to 2.4 times in Q2FY18, finds a new study by Credit Suisse. But the percentage of companies with an interest cover of less than 1 continues to remain high at 40 per cent. While this is marginally lower than the first quarter estimate of 42 per cent, the decline in the ratio is largely due to the exit of Tata Motors from the list. The share of companies that are chronically stressed — Credit Suisse defines them as those having an