India Inc's credit quality outlook is positive for FY24, say Crisil and ICRA
- IBEF
- April 5, 2023
According to ICRA and Crisil, the outlook on the credit quality of Indian corporates will be positive for FY24 due to low leverage, domestic demand, healthier banks, and an uptick in capital expenditure.
Mr. Gurpreet Chhatwal, the Managing Director of Crisil Ratings, stated that India Inc.'s balance sheets have considerably improved. At the end of the fiscal year 2024, the median gearing of its rated portfolio is predicted to be around 0.45 times. This has kept the upgrade rate high, along with steady domestic demand and the government's unwavering emphasis on infrastructure spending.
On the other hand, Mr. K. Ravichandran, Chief Rating Officer of ICRA stated that in FY23, the credit quality continued its strong rebound. Further, the economic activity in India is likely to be supported in the short to medium term by improving consumer sentiment and the country's financial sector, which is currently in a relatively good state.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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