India, May 26 -- Moody's Ratings on Monday said elevated energy prices will weigh on the near-term credit conditions of Indian corporates, despite robust balance sheets and favourable long-term growth prospects.

Stating that Indian corporates are currently in a better financial position to absorb external shocks, supported by deleveraging, healthy liquidity and supportive policy frameworks, Moody's said persistently high energy prices and structural shifts in key service industries could test credit strength over the coming quarters.

"Elevated energy prices weigh on near-term credit conditions for Indian corporates, despite strong fundamentals," it said in a statement.

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