India Inc's credit quality improves as upgrades outpace downgrades

THE CREDIT QUALITY of companies remained strong in the second half of FY25, with credit upgrades outpacing downgrades, rating agencies Crisil Ratings, ICRA, India Ratings and Research and CareEdge Ratings said on Tuesday.

- SACHIN KUMAR

Crisil Ratings recorded 423 upgrades and 160 downgrades in the second half, while CareEdge Rating recorded 386 upgrades and 164 downgrades. ICRA, too, reported a higher number of rating upgrades compared to downgrades in 2024-25, upgrading 301 entities while downgrading 150.

According to ICRA, strengthening of India Inc's credit profile is particularly noteworthy, given the tumultuous past few years, which have been marked by global supply chain disruptions, commodity price fluctuations, inflation, and volatility in interest rates and currency values.

K Ravichandran, executive vice president & chief rating officer, ICRA, said India Inc has experienced an extended period of credit profile improvement, much of it due to strengthening of balance sheets.