Aviation, jewellery sectors face high credit risks: ICRA report

Aviation and gems and jewellery sectors face high credit risks due to the current business disruptions and prolonged recovery caused by the Covid-19 crisis, according to a report.

Besides these two sectors, microfinance institutions (MFIs) and tourism and hotels industries also face high credit risks, according to the report by ICRA Ratings.

It said that because of the Covid-19 crisis, the credit profile of a large number of sectors and entities has become vulnerable.

“The high-risk sectors — aviation, gems & jewellery, tourism & hotels, microfinance institutions — are the ones that face severe business disruption over the immediate term and where the recovery is more likely to be prolonged,” the rating agency’s Head (Credit Policy) Jitin Makkar said.