- Financial Express
MSMEs will now have to contend with higher input costs and increasing interest rates: Crisil
Credit and finance for MSMEs: Micro, small and medium enterprises (MSMEs), which benefited from government measures during the pandemic, will now have to contend with higher input costs and increasing interest rates amid volatility in the commodity prices impacted the profitability of MSMEs, ratings agency Crisil said in its ratings round-up report for the second half of FY23.
The agency’s credit ratio (credit rating upgrades to downgrades) moderated to “expected” 2.19 times in H2 FY23 from 5.52 times in H1 FY23 “because of rising global inflation and the resultant interest rate hikes,” it said. Overall, there were 460 upgrades and 210 downgrades in the credit rating of companies across sectors in the second half.