Credit Quality

India Inc's credit quality to improve further, says S&P Global Ratings

Declining leverage, broad-based earnings growth drive profile

Good run for banks, but for how long?

Barring few, most banks have shown a drop in the low-cost CASA. Ditto their net interest margin. The credit quality is holding up, but some banks have reported fresh slippages

India Inc's credit quality remains healthy in H2FY24: Rating agencies

While commodity prices have softened, revenue of upgraded companies in the CRISIL rating pool grew by about 13 per cent in fiscal 2024 largely led by a pick-up in volume

Credit quality of Indian companies stayed healthy in H2FY24, says CRISIL

Rating upgrades surpassed downgrades in H2FY24. Outlook remains robust for H1FY25

Credit quality of export, commodity-linked sectors to face pressure: Crisil

Rating upgrades outpace downgrades in H1FY24

Biz route taken by India's renewable IPPs to mirror credit quality: Moody's

According to Moody's, the paths chosen by the renewable energy IPPs will have a varying impact on their respective business and financial risk profiles

Mahindra Finance assets grow 27% in FY23 on strong credit offtake

Credit quality improves as stage-3 assets dip to 4.6%

India Inc's credit quality outlook positive for FY24, say Crisil and Icra

Interest rate hikes, global slowdown, stubborn inflation pose risk

Credit ratios stay robust in H1FY23: Rating agencies CRISIL, ICRA

CRISIL said these sectors would see a moderation in cash flows vis-a-vis earlier expectations due to slowdown in demand from end-user markets

Credit quality of companies strengthens in first half of FY23: Report

Carrying on with the momentum since early FY22, credit quality of corporates has strengthened further in the first half of the current fiscal with rating upgrades being more than three times that of downgrades, says Icra Ratings. Upgrades saw an 18 per cent increase in the agency's portfolio entities in H1 on an annualised basis, which in FY22 was a notch higher at 19 per cent, making it a significant mark-up over the past five-year and 10-year average of 11 per cent, the agency said. The agency upgraded 94 companies in the first half of FY21, which went up to 303 in H1 FY22, but declined to 250 in H1 FY23. For the full fiscal of FY21 there were 282 upgrades which doubled to 561 in FY22. As against this, the numbers of downgrades were 200 in H1 FY21, 108 in H1 FY22 and 76 in H1 FY23 and at 316 in FY21 and 184 in FY22. The credit ratios stood at 0.5, 2.8, 3.3, 0.9 and 3 respectively. The agency, however, said the upgrades in the reporting period were concentrated in a few sectors.

India Inc's credit quality continues to improve in H1, may moderate: Crisil

India Inc's credit quality showed further improvement in April-September period with the ratio of upgrades to downgrades inching higher. The credit ratio's improvement to 5.52 in H1FY23 as compared to 5.04 in H2FY22 was driven by leaner balance sheets led by healthy cash flows and muted investments, Crisil Ratings, which rates 6,800 companies, said. However, the agency clarified that the data may not be fully representative as many small businesses with outstanding ratings have turned non-cooperative in sharing data on a continued basis which can be driven by adverse financial health. India Inc has emerged stronger post-pandemic, its managing director Gurpreet Chhatwal said, exuding confidence that the corporate India can weather the current storm caused by global events like higher inflation and monetary tightening which will hurt India's exports. Crisil's senior director Somasekhar Vemuri said there can, however, be a moderation in the credit ratio going ahead due to some of the

Microfinance loans grow 24% YoY in Q1 of FY23; credit quality stable

Fund flow to the sector has improved but some smaller MFIs still find it difficult to access finance from banks

India Inc's credit quality improved in 2nd half of FY22: Rating agencies

Icra said credit quality rebounded in FY22 after the economic slowdown in FY20 and the pandemic scarred FY21

Credit quality of Indian corporate sector experiences rebound in FY22: ICRA

Geo-political tensions may limit further improvement in FY23

How did balance sheets become healthier?

Bank financing of firm investment has retreated in favour of equity financing

Rated firms' credit quality improves in Q1, along with biz sentiment: CARE

Manufacturing, Infra firms see uplift; NBFCs face hit

Sarguja Rail acquisition not to affect Adani Ports credit quality: Moody's

A 31.5 per cent stake in Gangavaram Port is also credit neutral, the report said

Profits, credit quality of firms in India recovering 6 months faster: S&P

Profits and credit quality of companies rated by S & P Global Ratings in India, China and Pacific are recovering about six months faster than the agency anticipated with reducing downside risk to ratings.Indonesian companies, on the other hand, are unlikely to recover until the second half of 2022, said the report titled 'Asia Pacific Corporate and Infrastructure Credit Outlook 2021' which covers entities in India, China, Japan, Indonesia, Australia and New Zealand.The report discusses the pace at which corporate sector in these countries is likely to recover from Covid-19 pandemic. It also includes a list of credit trends on the radar of S & P Global Ratings analysts in 2021, including demand recovery, funding conditions and financial discipline."Significant downside risk persists for the credit quality of Asian companies with negative rating outlooks on nearly 25 per cent of investment-grade and about one-third of speculative grade companies we rate in region," said S & .

Credit quality of rated entities improved in Q3, says CARE

The MCR, the ratio of upgrades plus reaffirmations to downgrades plus reaffirmations, rose to 0.96 for Q3FY21

Moody's downgrades Hero FinCorp ratings; outlook revised to negative

Today's rating action concludes the review for downgrade initiated on April 13, 2020, Moody's said in statement