NEW DELHI: Nearly 66 per cent of the companies rated by Crisil will be eligible for a one-time debt restructuring, considering the financial benchmarks set by the RBI-appointed Kamath Committee. The domestic ratings agency said it has studied the rated portfolio of 8,500 companies, excluding financial sector firms and small and medium-sized firms, after sorting them by ratings, sector and moratorium availed.
“At an aggregate Crisil portfolio level, two out of three companies were found eligible for restructuring,” said Subodh Rai, senior director, Crisil. He further added that three out of four investment-grade companies (rated Crisil BBB- or higher) and one out of two in the BB rating category qualify for
restructuring of bank loans.
However, in the Crisil B category, only one in three qualify because these companies tend to have relatively weak debt protection metrics. Broadly, companies belonging to “resilient” sectors — such as construction, iron and steel, manufacturing, chemicals, pharmaceuticals, corporate retail and consumer durables have a higher ratio of companies qualifying for loan recast.
Among the weaker sections are residential real estate, power generation, gems and jewellery, auto dealership, sugar, the hospitality and tourism sectors. The number of firms being eligible may rise as the situation on ground evolves.