Indian firms getting downgraded like never before; credit markets at risk

Ratings have been cut for 847 companies

Indian companies are getting downgraded at the worst pace ever, adding to challenges for policymakers trying to keep credit markets from seizing up amid the coronavirus disease-induced lockdowns.
 

For every upgrade of rupee debt of Indian companies since April 1 there have been about 11 downgrades, leaving this quarter set to be the worst on record if sustained, according to a review of moves by the country’s four main credit assessors — CARE Ratings, Crisil, ICRA and India Ratings & Research.
 

Ratings have been cut for 847 domestic firms in the period.