credit outlook of Indian companies is expected to be positive, but the third wave of the pandemic, if it assumes large proportions, is key monitorable and would be a risk.
Credit ratio of companies rated by Care Ratings has recovered to 2.05 in the first half of the financial year 2022 from a sequential improvement of 1.27 in previous six months (October to December).
Credit ratio of these companies were in downward trajectory in the earlier three half years. Credit ratio is number of upgrades to number of downgrades.
A ratio of more than 1 indicates there are more upgrades than downgrades, and vice versa. In the April-September period, Care Ratings upgraded ratings of 301 entities and downgraded ratings of 147 entities. “Inspite of the