अब आप न्यूज्ड हिंदी में पढ़ सकते हैं। यहाँ क्लिक करें
Home » IANS » ‘Timely approvals for debt restructuring must to avoid sharp rating action’

‘Timely approvals for debt restructuring must to avoid sharp rating action’

Published on :

New Delhi, Aug 8 (IANS) Terming debt restructuring a breather for corporates, rating agency Crisil said that liquidity-strapped firms need timely lender approvals to avoid sharp rating action.

According to Crisil, the Reserve Bank’s decision to enable lenders to permit a one-time restructuring of loans will ease the liquidity pressure on companies amid the Covid-19 pandemic.

“Crisil will factor in the impact of debt restructuring on its rated credits, as and when the process is initiated, and its rating action will depend upon the timeliness and terms of the restructuring of debt,” the rating agency said in a statement.

“Also, Crisil’s rating actions will continue to factor in any structural deterioration in the credit risk profiles of its rated companies amid prolonged business-side pressures, or such other reasons, in the normal course of rating reviews.”

On Thursday, the RBI announced that a restructuring window will be opened only for companies which are under stress due to the pandemic and which were classified as standard, but were not in default for more than 30 days with any lending institution as on March 1, 2020.

“Other contours of the restructuring window are being worked out by the RBI, and will remain a monitorable,” the statement said.



(This story has not been edited by Newsd staff and is auto-generated from a syndicated feed.)
(For more latest news and updates Like us on Facebook, Follow us on Twitter. Download our mobile app )

Latests Posts