Inflation, rates may hit $114-billion firm debts: Standard and Poor's

'Deterioration in credit profile may not lead to large-scale defaults even in stressed scenario'

Credit profiles could deteriorate for up to $114 billion of debt in the books of Indian companies tackling rising interest rates and inflation, said Standard and Poor’s (S&P) on Tuesday.

The deterioration in credit profile is, however, unlikely to lead to large-scale defaults even in a stress scenario due to buffers in the economy and the companies' financials, said the global rating agency.

The stress test of more than 800 (mostly unrated) Indian companies and representing $570 billion in debt showed credit profiles could deteriorate for up to 20 per cent of Indian corporate debt, said S&P in a report