MUMBAI: Rating agencies expect India Inc’s credit quality to deteriorate in near term as the nationwide 21-day lockdown, aimed at containing the spread of coronavirus, disrupts business and brings the economy to a standstill.
Indian companies' credit quality had remained under pressure through financial year 2020, that ended on Tuesday, amid a slowdown in the economy led by sluggish consumption and investment demand.
Even as rating agencies feel that the alarming spread of the infections and a looming global recession have cast a long shadow over India' Inc's credit quality outlook, the companies' ability to recover from demand slump will be a key decisive.