InvestorQ : Why Moody’s downgraded the rating of IndusInd Bank and what does that mean for the stock price of IndusInd Bank?
Juvina Maggie made post

Why Moody’s downgraded the rating of IndusInd Bank and what does that mean for the stock price of IndusInd Bank?

Answer
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Angel dcosta answered.
7 months ago


Let me clarify that Moody’s has not downgraded the rating of IndusInd but has only downgraded the outlook of IndusInd. The rating remains the same, although it can be said that downgrading outlook works as a warning signal. IndusInd Bank had been under asset quality stress for the last few quarters. The rating of IndusInd Bank at Baa-3 / P-3 has been affirmed by Moody’s. However the outlook has been downgraded from “Stable” to “Negative”. The Baa3 rating already denotes the lowest rating in investment grade and the negative outlook sounds a warning to the bank and to its customers that the risk of a rating downgrade is real. IndusInd has had some serious asset quality problems in the last few quarters due to dubious exposures. The stock could be faced with selling pressure on every bounce and you need to play the stock accordingly.