There are green shoots in the economy, but the recovery is quite fragmented across sectors, said Ajay Mahajan, MD & CEO of CARE Ratings in an interview to CNBC-TV18.

“Some sectors have shown steady improvement, but there are some sectors that are still languishing. So we need to see how this whole thing plays out over the next two quarters, but we remain cautiously optimistic,” he said.

Mahajan said the outlook for the next two quarters looked sober. “We are in a state where a larger part of the corporate sector is in the process of deleveraging as a result of reduced economic activity. So, the outlook remains sober for the next two quarters,” he said.

He said CARE Ratings was is in a transformative journey and focused on processes to ensure quality of ratings. “CARE has been internally focused in the last couple of years with the board, management, focusing a lot on processes and making sure that we button up everything internally. We bring back in full steam our entire focus on quality of ratings, on analytical rigour in the company and our entire focus is on improving quality of our ratings,” he said.

(Edited by : Santosh Nair)