INSUBCONTINENT EXCLUSIVE:
financiers and utilities, such as State Bank of India, HDFC Bank and NTPC, after having lowered the sovereign rating.
The global rating firm
cited the close links of these companies with the government as the reason behind the rating outlook
The revision in outlook was for six financial institutions and some other firms operating in the infrastructure and power sectors.
In the
financial institutional space, rating outlook on Exim India, Hero FinCorp, Hudco and IRFC were revised to negative while it kept the outlook
has nothing to do with their business prospects
business prospects and the sovereign rating profile
But it could upgrade the baseline credit assessment (BCA) of SBI and Exim India, if these banks demonstrate improvement in their asset
support assumptions, even if the sovereign rating is downgraded by one notch to Baa3, the support uplift should be sufficient to keep the
unlikely to be upgraded over the next 12-18 months while their BCAs can be revised on better asset quality and funding profile.
In parallel,
the rating firm has downgraded the outlook on a number of sovereign-linked infrastructure companies, such as NTPC, NHPC, NHAI, GAIL and
Outlook on private sector companies Adani Green Energy and Adani Transmission was also revised to negative.
