<\/p>\n<\/p>\n
MMoody’s Investor Services has downgraded the long-term local and foreign currency deposit ratings of State Bank of India, HDFC Bank to Baa3 from Baa2, maintaining their outlook as negative.<\/p>\n
It has also downgraded IndusInd’s long-term local and foreign currency deposit ratings to Ba1 from Baa3 and its BCA to ba2 from ba1 and the rating outlook is negative.<\/p>\n
The downgrade comes a day after the rating agency downgraded India’s sovereign rating.<\/p>\n
Moody’s has primarily attributed the downgrade to the economic disruption caused by the coronavirus outbreak and the downgrade of the sovereign rating.<\/p>\n
The ratings agency has also downgraded the long-term issuer rating of EXIM India to Baa3 from Baa2, keeping its outlook negative, said a Moody’s statement.<\/p>\n
Consequently, Moody’s has downgraded HDFC Bank’s Baseline Credit Assessment (BCA) to baa3 from baa2. The deposit ratings of these banks are at the same level as India’s Baa3 sovereign rating.<\/p>\n
Moody’s has placed the Baa3 long-term local and foreign currency deposit ratings of Bank of Baroda, Bank of India, Canara Bank and Union Bank of India and their ba3 BCAs under review for downgrade.<\/p>\n
It has affirmed Punjab National Bank’s long-term local and foreign currency deposit ratings at Ba1 and its BCA at b1. The rating outlook of PNB has been changed to stable from positive.<\/p>\n
In the case of Central Bank of India and Indian Overseas Bank, Moody’s has affirmed their long-term local and foreign currency deposit ratings at Ba2 and their BCAs at b2. The rating outlook of these issuers is maintained as stable.<\/p>\n
“The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, volatile oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets,” it said.<\/p>\n
According to the rating agency, the Indian banking sector has been affected given the disruption to India’s economic activity from the coronavirus outbreak, which is weakening borrowers’ credit profiles.<\/p>\n
Moody\u2019s downgrades SBI, HDFC ratings<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[667],"tags":[],"class_list":["post-216530","post","type-post","status-publish","format-standard","category-business"],"_links":{"self":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/216530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/comments?post=216530"}],"version-history":[{"count":0,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/216530\/revisions"}],"wp:attachment":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media?parent=216530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/categories?post=216530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/tags?post=216530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}