During the year, the agency upgraded the ratings of 295 issuers, representing 21 per cent of the reviewed portfolio. The rating downgrades were significantly lower, seen in only 78 issuers.
Domestic drivers seen through consumption-led demand (premium segment), and investments (mainly government capex) contributed to the business growth. Transmission of commodity prices to end customers supported profitability amid stubborn inflation and elevated interest costs, the agency said.
Indian corporates increased their clout in overseas markets led by strong demand from the US and some realignment from China due to supply chain diversification. Amid the doom and gloom of the global economy, the Indian market appeared to be partly delinked to global woes and corporate India remained one of the few shining spots, it added.
Downgrades were witnessed largely in companies engaged in construction that saw order execution getting delayed and in wind power generation companies (most of them with the same promoter) following a continuous decline in the power generated. Other downgrades were scattered across sectors and were due to individual entity-specific factors.
During FY23, upgraded mid-sized corporates witnessed an improvement in their operating performance across the rated portfolio, supported by positive business sentiments. This was in contrast to FY22, where a divergence in recovery was seen with mid-sized corporates lagging their large peers, Ind-Ra said.
First Published: Apr 01 2023 | 3:12 PM IST