The global credit rating agency, Fitch in its latest credit change zone report for the country's listed corporates has said that they are less optimistic in their projections for the 27 Indian listed corporates they publicly rate. Fitch has rated 27 out of the top 100 largest listed Indian corporates in its report.
Fitch Ratings and India Ratings and Research which is part of the Fitch Group, projects that 17 out of the 27 'Fitch-rated' corporates in the top-100 portfolio to be in credit-positive change zones, where leverage is forecast to fall, and 10 companies in the credit-negative change zones, where leverage is forecast to rise.
Four of the 27 Fitch-rated companies are positioned in opposite credit change zones. It has predicted Wockhardt, NHPC, and Reliance Industries to be in credit-negative change zones, conversely, Fitch forecasts Bharti Airtel in the credit-positive change zone. The report explained that market expectations of improving corporate credit profiles is driven more by projected higher EBITDA (earnings before interest, tax, depreciation and amortisation) generation than lower debt and capex (capital expenditure).