Moody's sees India Inc struggling for credit in 2020 as slowdown weighs

Sluggish economic growth, slowing earnings are major concerns

Sluggish economic growth and lacklustre profitability will weaken credit conditions for most non-financial Indian companies in 2020, said rating agency Moody’s.

The credit profiles of rated firms are unlikely to improve significantly over FY21, due to elevated debt levels, weakening profitability and the continued economic slowdown. This puts pressure on both investment and consumption, said Kaustubh Chaubal, a Moody's Vice President and Senior Credit Officer.

Following Moody's change in outlook on India's sovereign rating to negative in November, 51 per cent of its 45 rated companies carry a negative outlook.

The conditions will remain stable for the infrastructure sector, supported