Corporate debt quality remains steady in June after improving since Feb

According to CARE Ratings, upgrades in rated debt can be attributed to higher demand with the economy opening up after lockdowns, releasing pent-up demand, and lower cost of capital

Reflecting consolidation in the credit profile, corporate debt quality remained steady in June 2022 after having gradually improved since February 2022.

The reading on CareEdge Debt Quality Index (CDQI) was 92.56 for June, the same level in May 2022, according to CARE Ratings. After a pause in January 2002, the print on the index moved up for four months from 91.96 in February 2022 to 92.56 points in May 2022.

The CDQI captures the improvement or decline in the quality of debt on a scale of 100 (index value for the base year FY12). Intuitively, an upward movement indicates