Record Stimulus Slows Credit Downgrades of Indian Companies
- Pace of rating cuts of local firms slows from worst on record
- Rupee bond spreads have plunged from highest since 2009 in May
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India’s unprecedented stimulus measures to fight the coronavirus crisis are starting to show signs of slowing the sharp worsening in corporate credit quality.
There have been around five downgrades for every one upgrade of rupee debt of Indian firms since July 1. That compares with a ratio of almost 11 to one in the three months ended June 30, a record rate, according to a review of moves by India’s four main credit assessors -- CARE Ratings, Crisil, ICRA and India Ratings & Research.