Credit rating agency, CARE Ratings in its latest report has showed that debt quality of Indian companies improved during January-August 2018. CARE Ratings Debt Quality Index (CDQI) remained positive in the reported period.
As per the report, CDQI fell marginally in the month of September 2018 and October 2018 and remained more or less stable in the months of November 2018 –February 2019. The index was at 90.84 points in February this year compared with 89.23 points in the corresponding month last year. The volume of debt of the sample companies stands at Rs 35.07 lakh crore in February 2019.
Meanwhile, CARE Ratings Debt Quality Index (CDQI) denotes the quality of debt that can be interpreted over time and juxtaposed with other developments in the financial sector. The CDQI captures, on a scale of 100 (index value for the base year FY12), whether the quality of debt is improving or declining.