Friday, March 21, 2014

Indian companies' credit profiles improving - Standard & Poor's Ratings Services

Indian companies are boosting their credit profiles by divesting stake in businesses and selling assets or using their free operating cash flows to reduce debt, Standard & Poor's Ratings Services said on 19 March 2014. 

The quest to improve credit profiles comes after a weak economy and high interest rates have adversely impacted their cash flows, while companies are also refocusing on cutting debt after years of fast expansion. 

S&P highlights infrastructure companies with high leverage are also considering selling assets or stakes in subsidiaries to cut down on their debt levels.