Sunday, January 11, 2015

India's corporate weakness graph of the day

The weaknesses in corporate balance sheets is one of the three headwinds the Indian economy has to navigate in its quest for higher growth rates.

A reflection of this weakness comes from the graphic (from a very interesting article on India's banking sector by Harsh Vardhan) below highlighting the deteriorating ratings profile of bond issuances from 2009 to 2013. 
The three ratings agencies account for 95% of all bond issuance and the shift towards riskier issuance is evident. 

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