India Ratings Reports 'Robust Performance' Of Corporate Credit Profile In 1HFY25

India Ratings and Research on Tuesday said corporate credit profile continued its robust performance in the first half of the current fiscal with 202 issuers getting rating upgrades. Large corporates and A-rated corporates witnessed a higher number of upgrades in the first half of the fiscal, taking the downgrade-to-upgrade ratio to a low at 0.31 for the first half, said Arvind Rao, Head of Credit Policy Group, Ind-Ra.

"The corporate credit profile continued its robust performance in the first half of fiscal 2025, the fourth year in a row. During this period, Ind-Ra upgraded the ratings of 202 issuers, representing 20% of the reviewed portfolio, while the ratings of 62 issuers were downgraded," Ind-Ra said in a statement.

Rao further said that the D/U ratio is expected to moderate marginally in the current fiscal, compared to 0.37 in the 2023-24 fiscal.

"We expect issuer rating upgrades to outpace downgrades in the second half of the current fiscal," Rao said.

Ind-Ra said that during the first half of the fiscal, large corporates saw a sharp improvement in rating upgrades. 'A' category and above ratings saw significantly lower rating downgrades.

This was supported by continued robust economic growth amid sound domestic consumption demand amidst an uptick in rural demand, continued government focus on capex spending and strong services growth, said Ind-Ra, a Fitch group company.