India Inc credit upgrades hit decade high as firms reduce debt

Indian corporations are demonstrating financial resilience with credit rating upgrades reaching their highest level in a decade, according to ICRA. The ratio of upgrades to downgrades stands at 3.2x, reflecting improved business strength and asset quality across the sector.

Companies have also been actively reducing their borrowing levels, contributing to the positive trend. However, headwinds remain on the horizon, including elevated crude oil prices and weak monsoon patterns that could dampen agricultural performance. Uncertainty surrounding US tariff policies also poses risks for export-oriented sectors and pharmaceutical manufacturers.