S&P Global Ratings (S&P) upgrades India's insolvency regime to Group B from Group C.

Key facts

• S&P Global Ratings (S&P) raised India's jurisdiction ranking assessment to Group B from Group C.
• S&P revised its assessment of creditor-friendliness of India's bankruptcy resolution framework to medium from weak.
• Average recovery values under the Insolvency and Bankruptcy Code (IBC) have improved to more than 30 per cent from 15-20 per cent under the previous regime.
• The IBC has reduced the average resolution time for bad loans to about two years, down from six to eight years.
• Secured creditors often recover several multiples that of unsecured creditors under the IBC.
• India's resolution regime still lags those of more established Group A and some Group B jurisdictions.
• Average recovery rates of about 30 per cent are comparatively low.
• Recoveries are higher for secured debt and in asset-intensive sectors such as steel and power.