In its update on rating movements, Crisil Ratings said that there is broad-based and sustained improvement in corporate credit profile. Crisil’s credit ratio, which is the number of upgrades to the number of downgrades, climbed to 1.81 for the October-March period from 1.68 in April-September. Crisil and Icra gave a contrasting picture of credit risk even for the first six months of FY19 before IL&FS began defaulting. For instance, the downgrade of two telecom companies skewed the credit ratio for Crisil, while for Icra, it would be the IL&FS group effect. Indian companies have indeed deleveraged, reflecting in the slow but steady progress of insolvency cases.

Source: Mint April 01, 2019 21:22 UTC