Rising interest cost and galloping input prices -- especially commodities -- will make a dent in the profitability for corporates and make credit quality somewhat weaker, increasing the prospects for rating downgrades, Crisil said today.


</p><tr><td><p class='TableClas'></p><P class='TableClas'><DIV CLASS=rightDiv><script language="JavaScript">
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		</script> </DIV><p class='TableClas'>For the first time in the last four years, the number of downgrades for the existing ratings outnumbered upgrades, the rating agency said. For existing ratings, Crisil&#39;s modified credit ratio (MCR) -- the ratio of upgrades plus reaffirmations to downgrades plus reaffirmations -- for 2007-08 was at 0.97 times. This means that the number of downgrades have been more than upgrades due to a change in the financial risk profile of companies.</P>
</p><p class='TableClas'>This marks a reversal of steadily improving credit quality for Indian corporates. India Inc will continue to face credit quality pressure because of high input costs and interest rates, coupled

Input, interest costs to dent credit quality

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