It did the rating review on April 13, 2020. The expectation was that the company's asset quality will deteriorate on the back of rising loan delinquencies and defaults.
Some customers and businesses will struggle with payments as earnings decline due to the economic disruption of the coronavirus outbreak, said the rating agency. Hero FinCorp, a Delhi-based finance company, reported total assets of Rs 25,600 crore at the end of March 2020.
Moody's said it will review the rating once it has information on the impact of the economic disruption pandemic on HFL’s loan collections and asset quality.
It will also review the company's access to funding and its ability to preserve liquidity over the next 12-18 months. Given the review for downgrade, an upgrade is unlikely in the near term.
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