Blitz Bureau
NEW DELHI: Riding on broad-based earnings growth and increased financial discipline, credit quality is further improving for rated Indian corporates, a report showed on August 12. The S&P Global Ratings report said it has positive rating outlooks on a third of the Indian companies it rates.
The report forecasts aggregate EBITDA for rated Indian companies will grow 10 per cent in 2024, driven by telecoms, airports, commodities, and chemicals. “Our positive outlook on the Indian sovereign contributes to India’s high positive outlooks relative to other markets,” said S&P Global Ratings credit analyst, Neel Gopalakrishnan.
“But importantly, many of these credits also have improving stand-alone credit profiles,” Gopalakrishnan added. The report includes data on the broader outlook for Indian corporate and infrastructure companies in the region.
It also highlights the operational and credit position of 18 of the more highly followed rated firms in the region. According to the report, leverage will decline marginally even though average capital expenditure is up 30 per cent on pre-pandemic levels. “Companies have greater headroom over downside rating triggers, which will cushion earnings disappointments or increased capital expenditure or mergers and acquisitions; exceptions include companies in sectors such as renewables,” the S&P Global Ratings report mentioned.
Financing access and options have generally been deepening in the country. According to the report, rising cargo volumes support port revenues as operating efficiency supports margins.
