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Stimulus helps Indian firms boost financial health

International Desk, Rtv
|  20 Jun 2021, 17:54
Stimulus helps Indian firms boost financial health
Unprecedented stimulus spending is helping Indian companies to financially recover after disastrous Covid-19 second wave. The indicators of the financial graph are going upwards. 

The ratio of upgrades to downgrades in ratings and credit outlooks by the local units of S&P Global Ratings, Moody’s Investors Service and Fitch Group has improved to 1.2 this quarter, set for the highest level in nearly three years, data compiled by Bloomberg show.

K Ravichandran, a deputy chief rating officer at ICRA Ltd, a local unit of Moody’s, said, “Local companies are facing fewer downgrades during the second wave of the pandemic than during the first wave as most of them have bolstered their liquidity in the past couple of quarters, thanks to all the pandemic support announced by policymakers”.

The nascent recovery in Indian firms’ credit quality adds to signs that the pandemic-hit economy may be turning a corner. Still, many investors remain cautious and are piling into bonds that compensate them with higher coupons each time the indicators in the graph go down.

Source: The Times of India

B.M./ Rtv

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