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Loan moratorium to be credit negative for NBFCs: Moody's

Jun 02, 2020 15:46 IST

The RBI's decision to extend the moratorium on loan repayment by three more months will be credit negative for NBFCs, Moody's Investors Service has said. It said that NBFCs manage their liquidity primarily by matching outflows, mainly debt repayments, with inflows from customer loan repayments. The initial moratorium has led to a significant decline in cash inflows and has adversely impacted the liquidity of NBFCs. The extension of the moratorium will add additional stress to cash inflows, which will continue for at least three more months, the report said.

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