Mumbai: The profile for various debt instruments that rating agencies have a rating call on has been deteriorating, data shared by the agencies show.

The CARE Debt Quality Index for a set of 1,582 companies rated by Credit Analysis and Research Ltd (CARE) has been on a downward trend since June, the agency said in a statement on Friday.

The index moved lower from 93.43 in June to 91.78 in November. The index captures on a scale of 100 whether the quality of debt is improving or declining.

Data available with Crisil shows a similar deterioration in its debt quality. “Debt weighted credit ratio fell to 0.27 time, the lowest in three years," the rater said in its media presentation on Wednesday. Debt weighted credit ratio is the total debt on the balance sheets of firms upgraded versus those downgraded.

“This downward trend of the index is indicative of the deteriorating quality of debt over the last six months," CARE said in its statement. The combined debt of these 1,582 companies was 26.79 trillion in November.

Crisil in its presentation cautioned credit quality pressures are intensifying for highly leveraged firms and sectors with linkages to investment activity and commodities.