CareEdge Debt Quality Index:
April 2024
May 31, 2024 l Ratings
The CareEdge Debt Quality Index (CDQI) has witnessed upward trend since November 2021. The index continued
its upward move as it reached to the level of 94.45 in April 2024 as against at 94.33 in March 2024, on account of
higher amount of rated debt in the investment grade rating categories.
Exhibit 1: Movement in CDQI
100
98
96
94.45
94
92
90
88
86
84 94.45
82
80
Jun'15
Jun'20
Sep'17
Sep'18
Sep'19
Mar'12
Mar'13
Mar'14
Mar'15
Mar'16
Mar'17
Mar'18
Mar'19
Mar'20
Mar'21
Mar'22
Mar'23
Mar'24
Sept'12
Sept'13
Sept'14
Sept'15
Sept'16
Sept'20
Sept'21
Sept'22
Sept'23
June'12
June'13
June'14
June'16
June'17
June'18
June'19
June'21
June'22
June'23
Dec'12
Dec'13
Dec'14
Dec'15
Dec'16
Dec'17
Dec'18
Dec'19
Dec'20
Dec'21
Dec'22
Dec'23
Source: CareEdge calculations
About CDQI
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 1,680 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 51.99 lakh crore in April 2024.
For detailed methodology see:
http://www.careratings.com/pdf/Banner/CDQI%20PR%20&%20Report%20%20for%20website.pdf
1
CareEdge Debt Quality Index: April 2024
Annexure 1: Movement in CDQI
Month CDQI – Index Change Month CDQI - Index Change
May-22 92.56 +0.15 May-23 93.54 +0.06
Jun-22 92.56 0.00 Jun-23 93.79 +0.25
Jul-22 92.50 -0.06 Jul-23 93.75 -0.04
Aug-22 92.58 +0.08 Aug-23 93.83 +0.08
Sep-22 92.70 +0.12 Sep-23 93.87 +0.04
Oct-22 92.74 +0.04 Oct-23 93.76 -0.11
Nov-22 92.80 +0.06 Nov-23 93.84 +0.08
Dec-22 92.90 +0.10 Dec-23 93.91 +0.07
Jan-23 93.05 +0.15 Jan-24 93.95 +0.04
Feb-23 93.35 +0.30 Feb-24 94.02 +0.07
Mar-23 93.45 +0.10 Mar-24 94.33 +0.31
Apr-23 93.48 +0.03 Apr-24 94.45 +0.12
Source: CareEdge calculations
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CareEdge Debt Quality Index: April 2024
Contact
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