Default risk for Indian companies drops at fastest pace in decade

Default risks for Indian firms are declining at the fastest pace in more than a decade as the central government deploys huge stimulus to support local companies hit by the impact of the pandemic.

The cost to insure against nonpayment by a basket of Indian companies, including Reliance Industries and State Bank of India, dropped by 252 basis points in May and June combined, the most for any two-month period dating back to 2009, according to CMA prices.

The  government unveiled $277 billion of stimulus in May and the Reserve Bank of India cut benchmark borrowing rates to the lowest since at