India Inc's 'debt quality' declines by 0.23% after four-straight positive months

Care Ratings’ Debt Quality Index (CDQI) declined in the September 2016, after rising for four straight-months.

In September 2016, the CDQI stood at a negative 0.23%, from earlier rise of 0.24% recorded in August 2016.

After sequentially declining by 0.01% in first month of current fiscal year, the index performed in an upward direction from June – August 2016. This would be the first major decline in this fiscal.

The volume of debt of the sample companies stood at Rs 30.26 lakh crore in September 2016.

For the calculating the debt quality, Care Ratings’ took a sample of 1589 companies from a total 2,980 companies as of March 2012. 

It covers  both corporate debt (debentures and bonds – excludes CPs and short term instruments) and Bank facilities (fund based and non– fund based – excludes short term instruments).

Here's how it has been performing since the index was first announced by Care. 

Source: Care Ratings

The index showed a continuous decline from May’15 (when it was first announced by CARE) to Dec’15. After improving marginally in Jan’16 and Feb’16, the index declined considerably in Mar’16.