Credit Rating Agency Crisil has downgraded Dewan Housing Finance Corporation’s commercial paper worth Rs 850 crore from A3+ to A4+. Its rating also continues to be on ‘Rating Watch with Negative Implications’. The company’s liquidity dropped to Rs 2,775 crore as of end-April.
The downgrade is driven by more-than-expected reduction in the company's liquidity because of further delays in fund raising from sell down of project finance loans and lower inflows from securitisation of non-housing loans.
DHFL is one of India’s premier housing finance companies and is among the oldest private sector Housing Finance Companies (HFC) in India. The company was established to enable access to affordable housing finance to the lower and middle income groups in semi-urban and rural parts of India.
