Reflecting an improving corporate profile, the credit ratio, which is ratings upgrades against downgrades, stayed high at 5.52 in the first half of FY23 from 5.04 in October-March FY22, according to CRISIL.
Strengthening domestic demand, higher realisations leading to better cash flows, and continuing debt-light balance sheets across sectors pushed up the credit ratio.
The credit outlook remains positive. Backed by an economic upturn, domestic demand is expected to be resilient. Plus, the impetus of the government’s infrastructure expenditure augurs well for companies, rating agencies said.
However, persistently high inflation, increases in interest rates, and a slowdown in large economies