The rise in Covid-19 cases and the 21-day lockdown announced by the government would cause large-scale disruption to businesses. Earlier on March 13, 2020, CRISIL had said in a credit alert that credit pressure on India Inc was intensifying.
CRISIL has reviewed 120 corporates most-affected by the situation, belonging to sectors such as airlines, hotels, tourism, malls, organised brick & mortar retail, multiplexes, and restaurants.
CRISIL has taken a rating action on 81 companies out of these, while ratings on the remaining 39 have been retained at existing levels. The actions are largely driven by near-term challenges to liquidity, which could impact financial flexibility. A summation of the rating actions are given below: