The improvement in April was supported by enhancements in higher rated debt instruments. As it is contemporary with minimum time lags, the health of the debt and credit markets is encapsulated on a near-real-time basis.
The dataset comprises 1,613 companies
from CARE Ratings’ portfolio of 2,980 companies
as of March 2012, rating agency said.
The dataset is revisited at regular intervals. It is replaced suitably with a new set of companies with a similar rating and an approximate volume of outstanding debt rated in case if an entity ceases to have a rating coverage.
The CDQI index rose to 89.51 in March 2021, 0.70 points more than March 2020 with a notable uptick witnessed in April 2020 on account of enhancements in rated debt of higher rated entities.
In June 2020 and December 2020, the gain in the CDQI index was supported by few ratings moving from default grade to non-default grade on improvement in the liquidity of these companies. During the last quarter of FY21, the index was largely range-bound, CARE said.
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