Moody's said the economic disruption caused by the coronavirus pandemic and the downgrade of the sovereign rating are the key drivers for Tuesday's rating actions. On Monday, Moody's had downgraded India's sovereign rating for the first time in 22 years by a notch to 'Baa3', which is the lowest investment grade -- just a notch above junk status.
Accordingly, the long-term issuer ratings of eight non-financial companies -- Oil and Natural Gas Corporation, Hindustan Petroleum Corporation Ltd, Oil India Ltd,
However, Moody's affirmed the issuer rating of Reliance Industries but revised the outlook to negative from stable.
With regard to ratings of banks, Moody's has downgraded the long-term local and foreign currency deposit ratings of HDFC Bank and SBI to Baa3 from Baa2, and the long-term issuer rating of EXIM India to Baa3 from Baa2, with negative outlook.
The deposit ratings of these banks are at the same level as India's Baa3 sovereign rating. Consequently, Moody's has downgraded HDFC Bank's baseline credit assessment (BCA) to baa3 from baa2.
Moody's has placed the Baa3 long-term local and foreign currency deposit ratings of
Moody's has downgraded IndusInd's long-term local and foreign currency deposit ratings, with a negative outlook. JD HRS