Many potential “fallen angel” banks — including ICICI Bank and public sector lender Indian Bank — face risks from a more severe economic downturn due to the Covid-19 pandemic, Standard and Poor’s (S&P) has warned.
S&P terms an entity a “fallen angel” if its rating is lowered to speculative-grade (a long-term rating of ‘BB+’ or lower) from investment-grade (a long-term rating of 'BBB-' or higher).
Potential “fallen angels” are issuers rated ‘BBB-’ with negative outlook or on CreditWatch negative. There have been three fallen angels in Asia-Pacific since the Covid-19 outbreak — Axis Bank, Bajaj Finance, and Hero FinCorp — S&P said in a statement.
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