Steel, construction attract rating push

The proportion of upgrades to downgrades (credit ratio) given by ratings agency Crisil stood at 1.68 in the first half of fiscal 2019, compared with 1.88 times and 1.45 times in the first and second halves of fiscal 2018, respectively. There were 685 upgrades and 408 downgrades in the first half of fiscal 2019. For the first time in 5 years, the credit ratio for investment-linked sectors, at 2.15 times, is higher than the overall credit ratio, Crisil said in a statement. The uptick could be seen in sectors such as steel, construction and industrial machinery that benefited not only from buoyant commodity prices, but also the government’s infrastructure spending, amid a lag in private investments. For domestic consumption-linked sectors, the demand growth drivers remain strong, but rising interest rates could act as a mild dampener, it said. Export-linked sectors have seen strong growth revival in recent months backed by buoyancy in the global economy and a sliding rupee.