CareEdge Ratings’ Credit Ratio, which measures the ratio of upgrades to downgrades, moderated to 1.62 times in H1FY25 down from 1.92 times in H2FY24. Despite the moderate dip in H1, the credit ratio remained close to the 10-year average of 1.59. Overall, there were 215 upgrades and 133 downgrades across sectors in the first half, with export-oriented sectors like Textiles and Chemicals experiencing higher downgrades. The moderation in the credit ratio can be mainly attributed to the muted performance of the mid & small corporates, especially in export-oriented sectors.
