India Inc's credit outlook turns 'Positive'
Crisil upgrades credit quality outlook on broad-based recovery, from ‘cautiously optimistic’
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Crisil Ratings on Wednesday said a broad-based recovery is on for India Inc currently, and upgraded its credit quality outlook to 'positive' from the earlier 'cautiously optimistic'.
The rating agency said the credit ratio, which illustrates the number of upgrades to downgrades, rose to over 2.5 times in the first four months of the fiscal, as compared to 1.33 times in the second half of FY21, it said in a statement.
The rating agency said it has also done a study of 43 sectors, excluding the financial sector, accounting for 75 per cent of the overall Rs 36 lakh crore in outstanding debt, which shows that the current recovery is broad-based.
Twenty-eight sectors are set to witness a recovery in demand back to pre-pandemic levels by the end of the fiscal, while for the remaining ones, it will be upwards of 85 per cent, it said.
"We believe India Inc is on higher and stronger footing," its chief ratings officer Subodh Rai said.
The revision in outlook is driven by strong economic growth both domestically and globally and the estimate that domestic demand will be buoyant even if a third wave materialises, courtesy, localised containment measures, he added.
