Coronavirus lockdown triggers higher downgrade pressures for India Inc

Over Rs 2.59 trillion worth of debt papers see downward rating in February

The Coronavirus-triggered lockdown is likely to lead to higher downgrade pressures for domestic corporates with over Rs 2.59 trillion worth of corporate debt papers already getting downgraded in February, a 15-fold jump compared to previous month’s quantum.

This is the highest amount of downgraded corporate debt papers in nine months. However, it could not be ascertained whether the Sebi data has adjusted for multiple downgrades of same security.

In recent months, downgrade pressure had shown signs of easing as value of such debt papers had slipped to 15-month low in January at Rs 17,129 crore, showed data from Securities and