Mumbai, Oct. 15

The credit worthiness of Indian companies, whichhad deteriorated in 2008-09, is improving, accordingto rating agency Crisil. The rater attributed this to easieraccess to funds owing to fiscal and monetary measures,positive stock market conditions and lower commodityprices. However, the recovery will be gradual, the reportsaid. But there is significant uncertainty with respect toexchange rates and consumer demand. Large exchangerate movements can hit export-dependent sectors hard,and domestic demand can be affected by rising prices ingeneral, and food prices in particular. It will be a long andbumpy road for recovery in corporate credit quality,Crisil said. - Our Bureau

(This article was published in the Business Line print edition dated October 16, 2009)
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