74% OF HOSPITALITY SECTOR FACES NEGATIVE CREDIT PROFILE

According to ICRA, the second wave has derailed the industry's recovery by almost three quarters

Three out of four companies in the hospitality sector have faced negative rating actions with respect to their credit profiles due to the pandemic’s impact, ICRA said in a statement. Since mid-April, pandemic-related lockdowns and restrictions by various states have severely affected the industry. There was increased wariness amongst guests to travel due to fear of infection.

We continue to maintain a negative credit outlook on the hospitality sector, as their credit profiles have weakened in the last 12- 15 months, with 74% of the entities faced negative rating actions, the rating agency said.

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