The rating agency said the investment grade entities took recourse to the moratorium to build a liquidity cushion for exigencies in the near term.
Subodh Rai, senior director, CRISIL
Ratings, said a majority of those with lower resilience have availed of the moratorium, while few among the more resilient ones have done so. Resilience is the ability of a sector to sustain the revenue impact of Covid-19 and bounce back to full production after the pandemic peters out.
While the moratorium window closed on August 31, debt restructuring under the RBI's framework can play a crucial role in supporting the credit profiles of mid-sized companies.
The outlook in most sectors remains muted. In particular, companies falling in the low resilience sector will continue to remain under stress over the next two to three quarters.
To support companies impacted by the Covid-19-induced slowdown, the RBI has introduced a one-time debt restructuring plan. Taking timely recourse to this facility can help companies manage their cash flows that, in turn, will provide support to their credit profiles, CRISIL
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