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Credit Crisis Is Easing for India’s Safest Local Borrowers

  • Spreads on top-rated company bonds drop near pre-crisis levels
  • But weaker borrowers are still struggling with cash crunch
Updated on

India’s credit crisis appears to be winding down for the safest borrowers, but it’s hardly time to celebrate as weaker firms still struggle.

Policy makers have been fighting to prevent debt markets from seizing up since the shock collapse of IL&FS Group last year. They can take some cheer in this: spreads on top-rated corporate bonds have dropped back near where they were when the crisis began in September last year.