Indian companies to see better credit profiles in 2018, says Moody's

Agency sees disruptions from GST implementation diminishing, economic activity recovering and sales voles increasing on better GDP numbers

Global rating agency Moody's on Wednesday said Indian companies would see improved credit profiles in 2018 on solid economic and Ebitda (earnings before interest, tax, depreciation and amortisation) growth.

The obligations for paying back money for foreign bonds maturing over three years was manageable, it said. "Disruptions from GST (goods & services tax) implementation will diminish and economic activity will recover. We expect that domestic economy will grow at around 7.6 per cent. This will result in higher sales volumes.”

“The new production capacity and benign commodity prices will support Ebitda growth of 5-6 per cent over the next 12 to 18