Credit ratio rises to 4x to 2.3 in April-Aug on better corp health: Acuite

Reading also crossed pre-pandemic level of 1.8 in 2019; upgrades more than doubled to 1,380 from 571 and downgrades shrunk by 40.8 per cent from 1,015 in April-August 2020 to 601 in Apr-Aug 2021

Showing signs of improving corporate health, the credit ratio for April-August 2021 moved up sharply to 2.3 from 0.56 in five months of FY21. The reading also crossed the pre-pandemic level of 1.8 in 2019, according to Acuite Ratings.

The upgrades more than doubled to 1,380 from 571 and downgrades shrunk by 40.8 per cent from 1015 in April-August 2020 to 601 in Apr-Aug 2021. The upgrades in 2019 were less in five months at 1,399 and downgrades higher at 1,290.

Besides, Policy support plus steps to provide liquidity, and lower debt levels vis-a-vis the fears in the early part