The gearing trend of the top 1,000 listed companies by market capitalization ratio shows that the average gearing declined from 1.02 on March 31, 2014 to 0.53 on March 31, 2023, the agency said.
Mehul Pandya, MD and Group CEO, CareAge Ratings, said the agency's credit quality assessment for the period October 2023 to March 2024 highlights the bounce back story of Indian corporates amid global challenges.
“This metric, which measures the ratio of upgrades to downgrades during a specific time frame, has demonstrated a broad-based uptick compared to prior periods. Specifically, the credit ratio increased to 1.92 from its previous position of 1.67. It is noteworthy that the debt ratio has consistently remained well above its long-term average,” Pandya said.
Pandya also said corporate India's strong performance is based on healthy domestic demand, increased profitability and debt reduction efforts.
The infrastructure sector has continued its strong trend with increased project commissioning, better realizations and continued government support to the sector. The credit ratio of the financial sector, although soft, remained strong.
The credit ratio stands at 1.92 for the half year ending March 2024, up from 1.67 in H1FY24. There were 357 upgrades and 186 downgrades in H2FY24.
The credit ratio had shown a normalizing trend over the last two and a half years after peaking in H1FY23.
CareAge Ratings said the ratio of 1.92 in H2 is well above the long-term average of credit ratios over the past 10 years, which is about 1.57.
Mehul Pandya, MD and Group CEO, CareAge Ratings, said the agency's credit quality assessment for the period October 2023 to March 2024 highlights the bounce back story of Indian corporates amid global challenges.
“This metric, which measures the ratio of upgrades to downgrades during a specific time frame, has demonstrated a broad-based uptick compared to prior periods. Specifically, the credit ratio increased to 1.92 from its previous position of 1.67. It is noteworthy that the debt ratio has consistently remained well above its long-term average,” Pandya said.
Pandya also said corporate India's strong performance is based on healthy domestic demand, increased profitability and debt reduction efforts.
The infrastructure sector has continued its strong trend with increased project commissioning, better realizations and continued government support to the sector. The credit ratio of the financial sector, although soft, remained strong.
The credit ratio stands at 1.92 for the half year ending March 2024, up from 1.67 in H1FY24. There were 357 upgrades and 186 downgrades in H2FY24.
The credit ratio had shown a normalizing trend over the last two and a half years after peaking in H1FY23.
CareAge Ratings said the ratio of 1.92 in H2 is well above the long-term average of credit ratios over the past 10 years, which is about 1.57.
