Moody's downgrades Hero FinCorp ratings; outlook revised to negative

Today's rating action concludes the review for downgrade initiated on April 13, 2020, Moody's said in statement

Global rating agency Moody's has downgraded Hero FinCorp Ltd's foreign and local currency issuer ratings from “Baa3” to “Ba1” due to severe impact of economic shock triggered by Covid-19 pandemic.

The outlook has been revised to negative from ratings under review. Indian non-bank finance companies (NBFCs) are expected to be affected by the shock given the extensive disruptions to India's economic activity.

Today's rating action concludes the review for downgrade initiated on 13 April 2020, Moody’s said in statement.

Rating action reflects the impact on Hero FinCorp of the breadth and severity of the shock, and the deterioration in credit quality it has