The pace of credit-rating cuts for Indian companies has slowed to the lowest since before the pandemic amid signs the local economy is coming out of its worst-ever contraction.
There have been about three downgrades for every upgrade of rupee debt since Oct. 1, the lowest since the last three months of 2019, according to data from India’s four biggest rating firms compiled by Bloomberg. That compares with a ratio of more than four to one in favor of cuts for the previous quarter, and a record 11 to one in the April-to-June period.
Economic data suggests that Asia’s third-biggest economy is recovering, albeit unevenly, after it shrank a record 24% in the three months to June 30. A slower pace of downgrades may open the door to funding for weaker borrowers in India.
That’s as a record 1.38 trillion rupees ($19 billion) of bond obligations from issuers rated AA and below mature in 2021, according to data compiled by Bloomberg.
Source: Business Standard
