Rating upgrades see a sharp rise in June quarter since Covid

Rating upgrades see a sharp rise in June quarter since Covid outbreak


Rating upgrades see a sharp rise in June quarter since Covid outbreak
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Synopsis
The credit ratio, or upgrades over downgrades, has seen a steady rise since the first quarter of last year. The gauge was at 0.36 in April-June last year with 241 upgrades versus 662 downgrades. It was at 1.77 in January-March this year. A ratio below 1 indicates deteriorating financial health of the corporate sector.
Agencies
“The rate of upgrades rose at the sharpest pace since outbreak of the pandemic last year," said Acuite Ratings.
Rating companies reported sharpest rise in June quarter upgrades bucking the trend of downgrades since the beginning of the pandemic early last year as local companies regain business normalcy, demonstrating better creditworthiness, amid a slew of relief measures.

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