Abhishek Securities

Moody's  Investors Service  on Friday downgraded  Hero FinCorp 's foreign and local currency issuer ratings to  Ba1  from  Baa3 , citing that the coronavirus outbreak would impact its credit quality. The non-banking finance company's (NBFC) outlook has also revised to negative from ratings under review. Given the negative outlook, an upgrade is unlikely in the near term, said Moody's, adding that it could return to stable if the company is able to absorb the impact of the asset quality deterioration and higher credit costs in the current fiscal year without materially impacting its capital position. The American rating agency expects the company's profitability and asset quality to stabilise beyond fiscal year ending March 2021. "Hero FinCorp's asset quality and profitability to weaken as loan delinquencies and defaults increase, because customers and businesses face a drop in earnings and cash flows due to the economic disruptions caused by the coronavirus...

Hero Fincorp , a NBFC , Subsidiary of Hero Motocorp gets an extension on its Baa3 rating by Moodys. The company might be facing liquidity challenges because of decline in loan collections. 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. Sandip ...