The debt quality of the companies deteriorated for the second consecutive month
MUMBAI: The Debt Quality Index has declined in August. Readings on the Care Ratings Debt Quality Index (CDQI) fell to 6.5 in August from 3.3 in July, thanks to a reduction in the rated debt of some organizations. Thus, for the second month in a row, the debt quality index has declined to a reading of 30.01 in June. CDQI indicates the quality of debt that can be interpreted periodically and linked to other growth in the financial sector. The CDQI confirms on a scale of 100 (Index value of FY12 for Aadhaar) that the quality of debt is improving or declining. However since the statistics were collected with minimal time delay, the health of the debt and credit market is covered on a near real time basis. The ratings agency said in a statement that the figures include 1,719 companies out of a portfolio of 2,60 care companies as of March 2018. The CDQI rose to 5.81 per cent in March 2021, an increase of 0.50 points year-on-year, due to a sharp rise in debt of companies with significant ...