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International ratings agency Moody's Investors Service today revised outlook of the country's non-financial corporates to stable from negative in view of momentum in economic recovery and political stability.
"The stable outlook for non-financial corporates reflects our view that economic recovery, enhanced access to global capital markets and successful implementation of pro-market policies will lead to improved corporate cash flows and will be broadly supportive of business growth," Moody's Vice-President and Senior Credit Officer Vikas Halan said in a report.
Improved external vulnerability should also reduce foreign exchange risk for corporates, despite gradual interest rate normalisation by the US Fed, the report said.
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The agency released its outlook on the country's non-financial corporates for 2015, which reflects its expectation for fundamental business conditions in the sector over the next 12 to 18 months.
The outlook states that the domestic corporates' key financial metrics will weaken in 2015, but pace of leverage growth will moderate as corporate earnings continue to improve.
Higher equity markets and asset valuations will also support de-leveraging.
The agency changed the outlooks on the refining and marketing, steel, metals and mining, and automotive sectors to stable from negative to reflect the broad-based improvement in growth prospects for companies in those sectors, despite lingering challenges.
