Downgraded Rs 7-trn debt as credit quality of Indian firms worsened: ICRA

Domestic credit rating agency Icra said credit quality of Indian companies worsened in fiscal year 2019-20 as it downgraded Rs 7 trillion of debt and warned of "unprecedented strain" on credit profiles of corporates due to the coronavirus pandemic.

The agency said policymakers will have to unleash more measures to avoid severe economic imbalances if the COVID-19 crisis prolongs.

In its annual credit quality review after the end of the fiscal year, Icra said it downgraded Rs 7 trillion of debt in FY20, as against Rs 3 trillion in the year-ago period, driven largely by actions against financial sector companies.

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