MUMBAI: Global ratings agency Standard & Poor’s said an increasing focus by India Inc on lowering debt is likely to improve their credit profiles.
“Focus on lowering debt will likely improve their credit profiles,” it added.
The routes adopted by domestic companies include raising equity, selling non-core assets and in some cases divesting businesses, it noted.
S&P credit analyst Mehul Sukkawala said economic gloom and high interest rates have affected debt-servicing ability and these are the primary factors pushing companies towards this strategy. In some cases, companies are refocusing on reducing debt after years of investing for growth.