Second Covid-19 wave to dampen recovery of corporate sector: ICRA

by Nidhi Bhati

Rating agency ICRA has cautioned that the continuing resurgence in Covid-19 cases, along with proliferation of localised restrictions, could dampen the pace of recovery for the Indian corporate sector. The rating agency expects six sectors, namely aviation, hotels, restaurants & tourism, media & entertainment-exhibitors, microfinance institutions, real estate-retail and retail, to be at high risk from the second pandemic wave, but much lower than in 2020. It further stated that the percentage of ICRA-rated portfolios that would be severely impacted by the second wave will be limited to four per cent much lower than the 17 per cent seen last year.