Advantages to Indian companies due to lower interest rates and hence a reduction in debt are likely to be reversed in the current fiscal year due to the sharp rise in interest rates and higher working capital financing needs, India Ratings & Research (Ind-Ra) said in a report.
The rating agency expects interest burden on corporates to surpass pre-covid levels in terms of value, increasing 30% in FY24 compared to FY22, with the cost of debt is likely to increase across all categories irrespective of size of the corporate.
Source:
Economic Times
