Covid-19 impact: Credit ratio at decadal low of 0.54% in H1, says CRISIL

The credit quality pressure on India Inc is likely to persist in H2FY21, with downgrades outnumbering upgrades, according to the rating agency

With effect of sharp economic contraction across sectors in India, the credit ratio (rating upgrades to downgrades) touched a decadal low of 0.54 per cent in the first of current fiscal ended September 2020 (H1FY21).  There were 296 downgrades and 161 upgrades in the first half.

The credit quality pressure on India Inc is likely to persist in the second half ending March 2021 (H2-21), with downgrades outnumbering upgrades, according to rating agency CRISIL.

The outlook for second-half outlook remains negative and will depend on policy and regulatory measures, and demand recovery.

While this (credit ratio fall) coincided with India’s