Debt Quality Index: September 2023 By CareEdge Rating
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The CareEdge Debt Quality Index (CDQI) has witnessed the rising trend since November 2021. It registered marginal improvement to the level 93.87 in September 2023 as against 93.83 in August 2023 on account of upgrades in the investment grade rating categories.
Exhibit 1: Movement in CDQI
About the CDQI Index
CareEdge Debt Quality Index (CDQI) denotes the quality of debt that can be interpreted over time and juxtaposed with other developments in the financial sector. The CDQI captures, on a scale of 100 (index value for the base year FY12), whether the quality of debt is improving or declining. Intuitively an upward movement indicates an improvement in the quality of debt benchmarked against the base year. 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 1,684 companies from our portfolio of 2,980 companies as of March 2012. The dataset is revisited at regular intervals and is replaced suitably with a new set of companies with a similar rating and an approximate volume of outstanding debt rated in case an entity ceases to have a rating coverage. Currently, the volume of debt of the sample companies stands at Rs 49.6 lakh crore in September 2023.
Annexure 1: Movement in CDQI
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