Financial Health of Indian Firms Worsens for Fourth Straight Month

The financial health of Indian firms is worsening, adding pressure on Prime Minister Narendra Modi to come up with more measures to kick-start a sputtering economy, Bloomberg News reported. Debt quality deteriorated for the fourth straight month in August, the Care Ratings Debt Quality Index showed. That’s the longest losing streak for the gauge that tracks 1,601 domestic firms since April 2014, and puts it at a 20-month low. India’s economic growth cooled for a fifth straight quarter to 5% in the three months ended June, the slowest pace since March 2013. Read more about that here. “Essentially, the economic slowdown is weighing on the quality of debt in the country,” said Madan Sabnavis, chief economist at Care Ratings Ltd. “We should see improvement in the quality once the economy picks up.” Read more