MSEs with credit rating increase debt by 70%

Currently, less than one per cent of MSEs in India are rated

CRISIL’s analysis of 1,600 micro and small enterprises (MSEs) which sought re-rating for four consecutive years or more shows 35 per cent of them saw at least one rating upgrade. 
 

An equal number saw no change in rating, while 14 per cent were downgraded. The rest experienced multi-directional rating changes over these four years. For these MSEs who sought re-rating, their lender attractiveness was enhanced and consequently, their debt increased by 70 per cent. Those with stable ratings or upgrades witnessed improvement in their leverage profile (debt to equity ratio).

Says Manish Jaiswal, Business Head, SME Ratings, CRISIL: “SME Ratings introduce