Covid-19 impact: Moody's cuts rating for SBI, HDFC Bank to 'Baa3'

After India downgrade, agency reduces long-term deposit ratings of 11 banks

Global rating agency Moody’s has downgraded ratings for State Bank of India and HDFC Bank’s long-term local and foreign currency deposit from “Baa2” to “Baa3”. This is part of rating action on 11 banks, after Moody’s downgraded India’s sovereign rating from “Baa2” to “Baa3” with a negative outlook.

Rating agency also revised the long-term issuer rating of Export and Import Bank of India (EXIM India) from “Baa2” to “Baa3”. It has maintained negative outlook.

The Indian banking sector has been affected given the disruptions to India’s economic activity from the coronavirus outbreak, which is weakening  borrowers’ credit profiles, Moody’s said in a