Rupee stability essential for corporate turnaround: Ind Ra

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Stating that it does not expect credit metrics to deteriorate in 2014-15, India Ratings today said stability in the rupee is one of the most important factors essential for corporate turnaround during the fiscal, reported PTI.

"We do not expect corporate credit metrics for FY15 to deteriorate from FY14 levels...currency stability (is) key to corporate turnaround in FY15," it said in a note.

The rating agency said that it had given a positive credit outlook to eight of the 22 sectors covered by it, which are expected to do better during the fiscal, as compared to the previous fiscal.

It said the sectors expected to do better in FY15 account for 11.8 per cent of the banking system's loans, while those with a stable outlook amount to 28.04 per cent of the banking industry exposure and those with a negative outlook are at 23.2 per cent.

The agency stressed that the exposure to sectors with stable outlook has increased from 26.3 per cent in the year ago, while the same to negative outlook sectors has decreased from 30.7 per cent in the year ago period.

Story first published: Tuesday, June 3, 2014, 23:00 [IST]
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