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Covid-19: 1,700 mid-size companies need debt restructuring, says CRISIL

The average debt size of these companies in CRISIL's rated portfolio, excluding outliers, is around Rs 25-30 crore

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Five sectors — power, gems and jewellery, packaging, hotels, auto component and auto dealers — accounted for over 99 per cent of firms that opted for a moratorium

Abhijit Lele Mumbai

2 min read Last Updated : Sep 01 2020 | 1:40 AM IST

Over 1,700 sub-investment grade mid-size companies (those with turnover of Rs 300-1,500 crore) will need debt restructuring to withstand the Covid-19 onslaught, said CRISIL Ratings on Monday.

A total of 1,754 sub-investment grade firms (BB+ or lower) and 589 investment grade entities (BBB- and above) had opted for moratorium on repayment of dues during March-August 2020. The average debt size of these companies in CRISIL’s rated portfolio, excluding outliers, is around Rs 25-30 crore.

Five sectors — power, gems and jewellery, packaging, hotels, auto component and auto dealers — accounted for over 99 per cent of firms that opted for a moratorium.

Topics : Coronavirus Indian companies debt restructuring scheme Crisil Loan repayment

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