About 70% of the entities are on negative credit outlook, compared with 92% of the entities with stable outlook in January 2020. The industry credit profile will weaken if the second wave derails the recovery momentum significantly. While the pace of vaccination roll-out was picking up a few weeks back, vaccine shortages in several states have affected the drive. Currently, ICRA expects the occupancy and RevPAR to be impacted, at least over the next two months because of the second wave. While widespread vaccination rollout would ease the situation to an extent, it is still evolving and remains to be seen.

Source: Mint May 01, 2021 06:11 UTC