S&P further reportedly said that more hike in interest rates is on the cards as the inflation remains above the RBI's upper tolerance limit of 6 per cent.

S&P also reportedly said that it expects India's continued strong economic growth to positively affect companies' revenues.

Companies and banks in India could feel the bite of rising rates and inflation, but rated firms are better placed to withstand the pressure, S&P Global Ratings reportedly said.

S&P further reportedly said that more hike in interest rates is on the cards as the inflation remains above the RBI's upper tolerance limit of 6 per cent.

"Credit profiles will deteriorate for companies that account for 20 per cent of the outstanding debt analyzed," S&P said in a report.

S&P also reportedly said that it expects India's continued strong economic growth to positively affect companies' revenues.

S&P said a normal monsoon will prop up agriculture production and help control food inflation.