Negative outlook list may get longer, Q1 biz to be hit: Rating agencies

In February, things seemed to be coming under control with vaccination, giving the impression the system would cope with the pandemic

Flagging an adverse impact of the surge in Covid-19 cases, rating agencies have said some more sectors could move to the “negative outlook” list.

Disruption due to lockdown curbs may impact business performance in the first quarter ended June 2021 (Q1FY22) before recovery in the second quarter (Q2FY22).

Ramnath Krishnan, president of ratings, ICRA, said the agency would revisit the sectoral outlook for FY22 (made in February 2021) and evaluate the impact on sectors and the overall economy. There are some sectors with a negative outlook. Some more could get added to the “negative outlook” category.

In February, things seemed to be coming