Rating Agencies Downbeat on Corporate India as Defaults Rise

Rating agencies have soured on India Inc as a credit crunch leaves businesses struggling to raise funds and pay debts, pushing default rates to their highest in five years, the Financial Times reported. Moody’s has a negative outlook on more than half of the non-financial companies it provides ratings on, its highest level in 10 years. The New York-based agency, which in early November downgraded its credit outlook for India to negative, has lowered its outlook for oil and gas companies such as Bharat Petroleum and information technology groups Infosys and Tata Consultancy Services. The proportion of companies falling into default rose to 3.7 per cent in the year ended March, the latest figures available, according to Fitch’s local subsidiary India Ratings and Research — the highest since 2014. Read more