India Inc operations to remain under pressure <http://in.biz.yahoo.com/090415/50/batfvc.html>*By fe Bureau*
While liquidity pressures in the Indian economy have eased since September-October 2008 and certain key sectors indicate some signs of improvement, rating agency ICRA believes the operating environment for business enterprises will remain difficult in calendar 2009. However, the intensity of stress is likely to be lower for most sectors. During the rest of 2009, the factors like slowdown in demand (especially in exports and to an extent in a few sectors in the domestic market), availability of fewer avenues of cost-effective refinancing/financing and limited investor (equity) interest, losses associated with volatility interest, pressures on profitability, lengthening of working capital cycle, heightened uncertainties in general would continue to impact the credit profiles of ICRA-rated companies. The total number of rating changes in the long-term/medium-term category was 49 in 2008-09 (as against 13 in 2007-08), of which the number of downgrades was 49 (7) and the number of upgrades zero (6). The total number of rating changes in the short-term category was 45 in 2008-09 (as against 16 in 2007-08), of which 44 (12) were downgrades and 1 (4) was an upgrade. Overall, ratings for 61 issuers were changed in 2008-09 (as against 25 in 2007-08), of whom 60 were downgraded (15) and 1 (10) was upgraded. The downgrading of the 60 issuers involved 74 rating actions1, implying that some of the issuers were downgraded more than once during the year. The second half of 2008-09 accounted for around 90% of the downgrades (based on rating actions); none of the rating actions led to an upgrade in the second half. The number of rating actions as a percentage of the number of issuers with live ratings (as on April 1, 2008) was 18% in 2008-09. Of these actions 99% were negative (that is, downgrades) and the balance 1% positive). --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
