Indian firms most at risk of default: report
For Indian firms, default risk remains higher than that of other Asian, US, and European firms
Among sectors, the increase in credit risk for non-financial companies was less steep when compared with financial firms during the financial crisis that started in 2008.
The risk of default among listed Indian companies is the highest among major Asian economies, data from Bloomberg shows. Credit default risk of Asian firms has improved across the board since 2008. For Indian firms, default risk remains higher than that of other Asian, US, and European firms, according to the financial data provider. The credit mix between low and high risk firms has not yet returned to pre-crisis levels, the analysis shows. The median default probability is still higher than the low levels seen in 2007, a Bloomberg report said. Among sectors, the increase in credit risk for non-financial companies was less steep when compared with financial firms during the financial crisis that started in 2008, the data shows. The study also looks at the median default risk for the top five Indian banks, which showed that these weathered the global crisis better than the smaller ones. A similar trend was seen in the case of non-financing firms where large firms fared better than smaller firms Bloomberg’s default risk model is based on operating fundamentals and equity market information to determine the likelihood of default.
jawed Eqbal
pgdm 3rd sem
mintlive news
For Indian firms, default risk remains higher than that of other Asian, US, and European firms
Among sectors, the increase in credit risk for non-financial companies was less steep when compared with financial firms during the financial crisis that started in 2008.
The risk of default among listed Indian companies is the highest among major Asian economies, data from Bloomberg shows. Credit default risk of Asian firms has improved across the board since 2008. For Indian firms, default risk remains higher than that of other Asian, US, and European firms, according to the financial data provider. The credit mix between low and high risk firms has not yet returned to pre-crisis levels, the analysis shows. The median default probability is still higher than the low levels seen in 2007, a Bloomberg report said. Among sectors, the increase in credit risk for non-financial companies was less steep when compared with financial firms during the financial crisis that started in 2008, the data shows. The study also looks at the median default risk for the top five Indian banks, which showed that these weathered the global crisis better than the smaller ones. A similar trend was seen in the case of non-financing firms where large firms fared better than smaller firms Bloomberg’s default risk model is based on operating fundamentals and equity market information to determine the likelihood of default.
jawed Eqbal
pgdm 3rd sem
mintlive news
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