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Credit quality of rated entities improved in Q3, says CARE

The MCR, the ratio of upgrades plus reaffirmations to downgrades plus reaffirmations, rose to 0.96 for Q3FY21

Topics
Credit Quality | CARE Ratings

Abhijit Lele  |  Mumbai 

RBI audit, rating agencies

After remaining flat in the first two quarters, the of rated entities, captured by Modified Credit Ratio (MCR), showed an improvement in the third quarter of this fiscal year, according to rating agency CARE.

The favourable financial conditions in terms of scale of operations, liquidity situation, capital structure, debt servicing parameters, and capital structure contributed to the improvement.

The MCR, the ratio of upgrades plus reaffirmations to downgrades plus reaffirmations, rose to 0.96 for Q3FY21, implying a marginally improving compared with the preceding two quarters.

The MCR in the first two quarters of 2020-21 was 0.94.

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First Published: Mon, January 04 2021. 01:44 IST
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