Moody’s has downgraded outlook on companies belonging to information technology, infrastructure as well as oil and gas sectors. In total, the rating agency on Friday cut outlook on 21 Indian firms.
Other financial institutions that have seen a downgrade are Exim Bank, Hero FinCorp, Hudco and Indian Railway Finance Corporation (IRFC).
Ratings of the above-mentioned financial institutions are unlikely to be upgraded in the next 12-18 months, Moody’s said.
The agency also downgraded the outlook on eight non-financial corporates to negative from stable. They are BPCL, HPCL, Indian Oil, ONGC, Oil India, Petronet LNG, Infosys and Tata Consultancy Services.
It also downgraded outlook on a number of sovereign-linked infrastructure companies. They include NTPC, NHPC, NHAI, GAIL, Power Grid, Adani Green and Adani Transmission.
In case of Exim Bank, Hudco, IRFC and SBI, Moody’s Investors Service said close links between these four companies and the government is the key reason for their downgrade. Moody’s believes that these companies will receive government support in times of need.