COVID19
Stimulus helps Indian firms boost financial health post COVID-19 second wave
New Delhi: Unprecedented stimulus spending seems to be helping in the recovery of the financial health of Indian companies after a deadly second wave of the COVID-19 pandemic, media reports said.
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, reports Bloomberg.
“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,” K. Ravichandran, a deputy chief rating officer at ICRA Ltd, a local unit of Moody’s, was quoted as saying by Bloomberg.
The nascent recovery in Indian firms’ credit quality adds to signs that the pandemic-hit economy may be turning a corner.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
