Few takers seen for debt recast 2.0 as demand recovers: Crisil
The Hindu
‘Hospitality, education, textiles firms form bulk of those opting to restructure’
With the recovery in demand and growing confidence in economic growth, very few corporates have opted for or are looking for debt restructuring under the RBI’s Resolution Framework 2.0, according to a report by Crisil Ratings. Barely 1% of eligible companies in Crisil’s rating portfolio had opted for or were contemplating restructuring under the Resolution Framework 2.0, the debt rating agency said in the report released on Thursday. The findings came from an analysis of about 4,700 firms rated by the agency. “The quick recovery in demand after moderation during the second COVID-19 wave, and sanguinity around economic growth have led corporates to give the restructuring option a miss,” said chief ratings officer Subodh Rai. The more localised and less stringent nature of restrictions during the second wave has meant relatively lower disruption in business activities compared to the first wave. So, the muted response is par for the course, he said.More Related News