Debt quality index gains nearly three point to close FY22 at 92.24

The better show was largely driven by enhancements in rated debt of higher-rated entities and reduction in debt of a large defaulting NBFC on recast

Reflecting an improvement in corporate credit health, the CareEdge Debt Quality Index (CDQI) showed a notable rise in FY22, from 89.51 in March 2021 to 92.24 in March 2022. This was largely driven by upgrades in rated debt, enhancements in rated debt of higher-rated entities and reduction in debt of a large defaulting NBFC on restructuring.

The reading on the index was 89.32 in March 2020, around the time of onset of Covid-19 pandemic (first wave).

The CDQI saw an improvement in all the last five months of FY22. The March 2022 index rose to 92.24 from 91.96 in February