CARE Downgrades DHFL Ratings For Want Of A Strategic Investor
The credit rating agency downgraded the non-bank lender’s rating to BBB- from A/A-.
CARE Ratings Ltd. downgraded debt instruments of Dewan Housing Finance Corporation Ltd. citing delays in announcement of a strategic investor. The credit rating agency downgraded DHFL’s rating to BBB- from A/A- with a negative outlook. The revision comes close on the heels of similar moves by ICRA Ltd. and Crisil Ltd.
CARE Ratings said it expects a strategic investor(s) to come on board DFHL before the end of this month.
Shares of the company were trading 6.62 percent lower at Rs 109.25 apiece on the Bombay Stock Exchange as of 01.20 pm on Wednesday while the benchmark Sensex was little changed at 37,301.15 points.
After a stock rout in September last year, the company has been battling allegations of fraud and resignations by board members. In an interview to BloombergQuint in February this year, Kapil Wadhawan, chairman and managing director, defended lending to group companies and denied allegations of any wrongdoing.
Refuting speculation over its debt repayment ability, DHFL last week said it has made payments of over Rs 30,000 crore towards interest and principal since September.
