Moody's extends review for downgrade on Hero FinCorp's Baa3 rating

Rating agency Moody's has extended its review for downgrade on Hero FinCorp Ltd’s (HFL) Baa3 local and foreign currency issuer ratings.

It did the rating review on April 13, 2020. The expectation was that the company's asset quality will deteriorate on the back of rising loan delinquencies and defaults.

Some customers and businesses will struggle with payments as earnings decline due to the economic disruption of the coronavirus outbreak, said the rating agency. Hero FinCorp, a Delhi-based finance company, reported total assets of Rs 25,600 crore at the end of March 2020.

Moody's said it will review the rating once