India Inc's Credit Profile Strengthens with Economic Boost

High economic growth has significantly improved the credit profile of India Inc in the first half of FY25, according to domestic rating agencies. Crisil, Icra, and Careedge reported varying credit ratio improvements driven by government infrastructure investments and rising private consumption, despite challenges for mid and small corporates.

High economic growth has bolstered the credit profile of India Inc in the first half of FY25, domestic rating agencies revealed on Tuesday.

Crisil Ratings, which evaluates about 7,000 companies, disclosed that its 'credit ratio'—the ratio of upgrades to downgrades—climbed to 2.75 times from 1.79 times in the previous six months. During this period, Crisil upgraded 506 companies and downgraded 184.

Positive credit outlooks were largely attributed to government infrastructure investments and buoyant private consumption, explained Crisil’s Senior Director Somasekhar Vemuri. Meanwhile, Icra and Careedge showed upward credit trends, albeit with some challenges in export-oriented and mid to small corporate sectors.

(With inputs from agencies.)