ICRA Head-Credit Policy Jitin Makkar said that it expects the credit pressure to abate going ahead after the challenging previous 2 years.

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In an interview with CNBC-TV18, it added that FY21 has been quite challenging for credit quality and this reflected in the numbers.

He further noted that upgrade momentum has been slightly rising and downgrade pressures slightly abating, adding that in each of the past five months, we have seen upgrades being higher than downgrades.

“We have downgraded roughly 14 percent of our portfolio entities and upgraded around 8 percent of those. So from a credit ratio standpoint, for every entity that was upgraded, we have downgraded almost two during the past year,” he said.

Hospitality entities, real estate entities, construction sector, auto dealerships, textiles, auto ancillaries are the sectors which saw a bulk of downward rating activity in FY21, he pointed out.

“Going forward we don’t foresee a similar level of downward pressure to persist,” he stated.

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(Edited by : Pranati Deva)

First Published:Apr 1, 2021 1:14 PM IST