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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