Despite Covid-19, ratio of rating upgrades to downgrades improves

The ratio of rating upgrades to downgrades (U/D ratio) has improved since June.
 

The ratio stood at 0.15 during the July-October period, against 0.06 during April-June. The numbers of upgrades for these timeframes were 736 and 227, while downgrades were at 4,769 and 3,755, respectively. The sectors that have opted for a moratorium and appear to be in Covid stress reported improvement in ratios.
 

According to SBI EcoWatch, only 15-20 per cent of firms may request for a debt rejig; and by most pessimistic estimates could top Rs 1 trillion. Those which are able to pay the scheduled oblig ations will not go for a restructuring.