India Inc's credit profile gets stronger during Covid-19 pandemic

But rating agencies warn that broad-based upturn not visible yet

The credit profile of Indian companies appeared to have strengthened as rating upgrades outpaced downgrades in the first half of financial year 2021-22 (H1FY22) despite the devastating second wave of Covid-19, according to rating agencies.
 
The upgrades were spread across sectors and the credit quality outlook was positive, signalling prospects for further improvement with rising economic activity. However, rating agencies cautioned that the underlying business fundamental metrics across most sectors are unlikely to exceed the pre-Covid levels in the near term. The traction seen in upgrades lately need not evoke a pigeon-holed conclusion of a broader upturn, said rating