Mumbai, Aug 26 (TIWN) Indian companies and banks is expected to feel the bite of high inflation and rising interest rates, but rated issuers are generally better cushioned to withstand, S&P Global Ratings said in a report.

However, renewables are relatively more exposed to rising rates due to large capital expenditure.  The report do not expect any default in the rated portfolio, which benefits from access to domestic banks and capital markets.  "Banks will not be immune, but we expect that in the stress scenario NPLs could rise modestly," the report added.  Corporate sector:  Large rated corporate credits in general have adequate cushion to withstand rising rates, widening credit spreads and increasing input costs. This is mainly due to the significant de-leveraging and improvement in operating fundamentals over the past two years.  Most companies also do not need meaningful funding for capex or financing, shielding them from the increase in funding cost. Further, only about 30 per cent of debt of the rated issuers is floating rate in nature, limiting the effect of the increase in interest rates.