NEW DELHI: Infrastructure sectors will continue to feel the post-Covid heat, as credit risk will remain high and recovery will be slow, said rating agency Standard & Poor’s.In its presentation titled ‘India’s Infrastructure Recovery Won’t Be Quick’, the American rating agency said that credit risks are rising because of increasing debt levels and a “weakening of counterparties. Refinancing remains difficult for speculative grade-rated issuers”.
Going sector-wise, the agency further added that the recovery in the airports’ segment is unlikely before the year 2024, which will amplify refinancing risks. The rating agency also added that the profitability will come under pressure.
