InvestorQ : Why Moody’s downgraded so many Indian companies like SBI, HDFC Bank, TCS and Infosys? Is it because of the India downgrade?
vidhya Laxmi made post

Why Moody’s downgraded so many Indian companies like SBI, HDFC Bank, TCS and Infosys? Is it because of the India downgrade?

Answer
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3 months ago


Normally, specific stock downgrades are a logical step after a sovereign downgrade since the sovereign rating works as the outer limit for an individual stock rating. As a result, Moody’s downgraded a number of banks and financials due to weak growth in loans and rising incidence of NPAs. Moody’s has downgraded SBI, HDFC Bank and EXIM Bank from Baa2 to Baa3. That means; further downgrades cannot be ruled out. In addition, Moody’s also downgraded the ratings of TCS and Infosys to negative on the back of weak tech spending expected this year. In addition, oil companies like OIL, ONGC and IOCL also saw lower ratings by Moody’s.