Two third of rated mid-sized companies fit for restructuring: Crisil

  • Industry News
  • Jun 09,21
According to Crisil, two thirds of its rated mid-sized companies are eligible for restructuring under 2.0.
Two third of rated mid-sized companies fit for restructuring: Crisil

Almost two-third of Crisil-rated mid-sized companies will be eligible for restructuring under the resolution framework 2.0 announced by the Reserve Bank of India (RBI). This resolution is specifically for contact-intensive sectors to alleviate liquidity challenges faced by companies in these sectors.

The apex bank announced a number of measures aimed at mitigating the pandemic’s impact, raising the aggregate debt threshold for struggling businesses to Rs 500 million from Rs 250 million and provided an on-tap liquidity window of Rs 150 billion to companies in the contact-intensive sectors.

Crisil rates about 6,800 mid-sized companies excluding financial sector entities. Out of these, 4,700 are small and medium enterprises (SMEs), having bank loan exposure of up to Rs 500 million, and are standard accounts as on March 31, 2021. These companies are eligible to avail of the restructuring.

According to Subodh Rai, Chief Ratings Officer, Crisil Ratings Ltd, RBI’s relaxation in overall bank exposure threshold is timely, as it increases the coverage of stressed companies that typically have weaker credit profiles. Three out of four companies eligible for restructuring have sub-investment category ratings, indicating their relatively weak ability to manage liquidity shocks. Headed that, rescheduling of loan repayments under the restructuring 2.0 window will provide interim relief to these companies against such liquidity shocks.

Liquidity window for contact-intensive sectors such as hospitality, travel and tourism, and aviation ancillary services, which have borne the brunt of the second wave of the pandemic, is timely. 

Sources: Live Mint

Related Stories

Other Industrial Products
Scaling up MSME exports

Scaling up MSME exports

With all the policy stimulus and rapidly changing geo-political scenario, the share of MSMEs in India's export kitty is expected to scale up manifold in the coming years.

Read more
Auto & Auto Components
STMicroelectronics, Semikron join hands for Si carbide tech in EV drives

STMicroelectronics, Semikron join hands for Si carbide tech in EV drives

STMicroelectronics (ST), a global semiconductor leader serving customers across the spectrum of electronics applications, has revealed it is supplying silicon carbide (SiC) technology for the eMPack..

Read more
Other Industrial Products
3i EXPO & Conference gets a rousing response from the manufacturing industry; IPF presents awards to 19 SMEs from across India

3i EXPO & Conference gets a rousing response from the manufacturing industry; IPF presents awards to 19 SMEs from across India

3i EXPO & Conference - hosted by Industrial Products Finder (IPF) from May 20-21, 2022 in Mumbai - received an arousing response from the Indian manufacturing sectors with senior representatives fro..

Read more

Related Products

Air Diaphragm Level Switch – Ads

AIR CONDITIONING & REFRIGERATION EQUIPMENT

Pune Techtrol Pvt Ltd offers a wide range of AIR diaphragm level switch – ADS.

Read more

Request a Quote

Air Filter - Xylo Foam Type

AIR CONDITIONING & REFRIGERATION EQUIPMENT

Clair Filter Systems offers a wide range of air filter - Xylo foam type

Read more

Request a Quote
Verified

Blast Chillers and Freezers

AIR CONDITIONING & REFRIGERATION EQUIPMENT

Blast Chillers and Freezers are used in all types of commercial kitchens for both increasing the shelf life as well as improving the production efficiency by cooking in advance during lean periods. Th Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back