Moody’s told the economic disruption that caused by the coronavirus pandemic and the downgrade of the sovereign rating is the key drivers for Tuesday’s rating actions
India’s sovereign rating was downgraded each day after, Also Moody’s Investors Service cut the ratings of 8 non-financial companies, that including Infosys, TCS, ONGC, and three banks SBI, HDFC Bank and EXIM on Tuesday. It was also downgraded 7 Indian infrastructure issuers, including NTPC, NHAI, GAIL, and Adani Green Energy Restricted Group, by one notch. Issuer ratings of IRFC and HUDCO that have also been lowered.
Moody’s told that the economic disruption which caused by the coronavirus pandemic and the downgrade of the sovereign rating is the key drivers for Tuesday’s rating actions. Moody’s had been also downgraded India’s sovereign rating for the first-ever time in 22 years by a notch to ‘Baa3 ’on Monday, that is the lowest investment grade which is just a notch above junk status.
The long-term issuer that ratings of the eight non-financial companies like Oil and gas Corporation, Bharat Petroleum Corporation Ltd, Petronet LNG, Tata Consultancy Services (TCS), Hindustan Petroleum Corporation Ltd, Oil India Ltd, Indian Oil Corporation Ltd, and Infosys have been downgraded. The outlooks of all these ratings are so negative.
Although, Moody’s affirmed the issuer rating of Reliance Industries the revised the outlook to negative from stable. Moody’s has also downgraded the long-term local and also foreign currency deposit ratings of HDFC Bank so also SBI to Baa3 from Baa2, and the long-term issuer rating of EXIM India to Baa3 from Baa2, with a negative outlook.
The deposit ratings of those banks are at the same level as of India’s Baa3 sovereign rating. Moody’s has also downgraded HDFC Bank’s baseline credit assessment BCA that to baa3 from baa2.
Moody’s has placed Baa3 long-term local and therefore the foreign currency deposit ratings of Bank of Baroda, Bank of India, Canara Bank and also Union Bank of India also their BCAs under review for downgrade. Moody’s downgraded IndusInd’s long-term local and foreign currency deposit ratings with a negative outlook.