Coronavirus pandemic to keep repayment risks elevated for securtised loans

The repayment risks on securitised loans in India will remain elevated for the next 12 months despite the improvement in collection efficiency after the end of moratorium, according to rating agency Moody’s.  

Weak economic conditions will continue to hurt borrowers' ability to repay loans, keeping performance risks for asset-backed securities (ABS) elevated.

The moratorium on payments came to an end in August 2020. The collections in rated Indian ABS improved markedly in September and October, although they remain below pre-coronavirus levels, said Dipanshu Rustagi, assistant vice president and analyst at Moody's.

At the same time, delinquency rates for rated auto