India corporate defaults hit 10-year high in fiscal year ended in March because of weak economy, tight credit, reports Indian rating agency Crisil; 3.4% of rated firms, or 188 companies, defaulted

Cindy Allen

MUMBAI, India , April 3, 2012 (Associated Press) – Indian ratings agency Crisil says corporate defaults are at a 10-year high because of a weak economy and tight credit.

During the fiscal year ended in March, 3.4 percent of the companies rated by Crisil defaulted on debts. All told, 188 companies defaulted, the highest ever.

As a result, non-performing loans at Indian banks are rising and more debt is getting restructured.

Debt-ridden industries like textiles, steel and construction accounted for a quarter of the defaults, says Crisil, a Standard & Poor's affiliate.

Chief executive Roopa Kudva says "this trend is likely to persist with slowing demand."

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