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Default rates at Indian firms may rise more on higher interest rate: Icra

While the report showed that 646 companies were upgraded and 418 were downgraded, the trend did not mean that there was an improvement in the credit quality of the corporates

Reuters  |  Mumbai 

More Indian companies are likely to default on their borrowings in the fiscal year that started in April compared with the previous year on higher interest costs and a deterioration in business conditions, according to rating agency ICRA. The default rate for Indian companies rose to 3.4 per cent in the fiscal year ended March from 2.6 per cent in the previous year, ICRA, the subsidiary of global rating agency Moody's Investors Service, said in a report published on Monday. "The default rate could go up in fiscal year 2019 on higher interest cost, deteriorating business ...

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First Published: Mon, April 02 2018. 15:39 IST