Providing some relief to the industries, credit rating agency, Crisil in its latest report has said that credit profiles of Indian corporates improved during the first half of the current fiscal year (H1FY19). As per the report, India Inc's credit ratio stood at 1.68 times in the April to September period as against 1.45 times in the preceding six months.
However, the rating agency pointed that credit profiles were moderated when compared to the same period last year (1.88 times in the first half of the previous fiscal year). Further, the report showed that the debt-weighted credit ratio of firms at 1.20 times during April- September 2018 against 1.53 times in the year-ago period and 3.19 times in the preceding six months.
Besides, Crisil listed the various risk factors for Indian companies in future such as the rupee depreciation, rising interest rates and tariff wars. But, Crisil-rated corporates are expected to sustain their credit risk profiles even in the face of headwinds, backed by strong demand, increased government spending towards infrastructure, and leaner balance sheets.