Value of downgraded debt trebles to Rs 1.38 trn in H1 of FY20: Crisil

Jewellery, garments, construction bear brunt of downgrades as slowdown, sharp fall in consumption demand, slower govt spending weigh

Credit quality pressures intensified for India Inc in the first half of fiscal 2020, driven by factors like global and domestic economic slowdown, sharp fall in consumption demand, and slower government spending, according to rating agency Crisil.

The value of debt downgraded more than trebled to Rs 1.38 trillion in the first half of fiscal 2020 (ended September 2019) from Rs 39,000 crore in the first half of fiscal 2019. That’s the highest for any half since fiscal 2016, rating agency Crisil said in the review of rating action in April-September 2019.

Constrained access to funding affected the credit profiles