ICRA downgraded the rating on the 850-crore commercial paper programme of DHFL to D from A4 on Wednesday due to delays in meeting debt obligation.
Dewan Housing Finance Corporation (DHFL) share price extended losses for the third consecutive session amid domestic ratings agencies lowering rating on Rs 850 crore worth of commercial paper..
Read more about DHFL commercial paper downgraded to ‘default’ by Icra, Crisil on Business standard. domestic rating agencies Icra and Crisil Wednesday downgraded rating on Rs 850 crore worth of commercial paper of Dewan Housing Finance Corporation (DHFL) to ‘default’ from ‘A4’ due to the mortgage lender’s deteriorating liquidity condition.The
DHFL, the third-largest pure-play mortgage lender, has received a default grade by Crisil and ICRA on its Rs 850 crore worth commercial papers (cps) due to delay in meeting its obligations. The mortgage lender had defaulted on bond repayments on 4 June.
· Ratings agencies ICRA and Crisil downgraded Dewan Housing Finance Corp Ltd’s (DHFL) commercial paper to their lowest ratings on Wednesday after the lender missed certain payments on bonds due this.
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Read more about crisil downgrades dhfl’s commercial papers to ‘default’ from A4+ on Business Standard. The downgrade comes after reports of default by the company in paying interest to the tune of Rs 900-1,000 crore of NCDs
Last week, DHFL said it was yet to repay 225 crore out of the total 375 crore of commercial paper to a dozen investors. which its credit rating was downgraded to default, or D, by credit rating.
The first commercial paper maturity is on June 7. "With liquidity inadequate as on date to service debt and visibility very low on timely fund-raising, Crisil expects the commercial paper to be in default on maturity." For arriving at the rating, Crisil has evaluated the standalone business and financial risk profiles of DHFL. It said the.
Shares of Dewan Housing Financial Ltd (DHFL) plunged over 18 percent on Thursday after rating agencies crisil and ICRA downgraded the company’s Rs 850 crore commercial paper (CP) to “D” from "A4+" and "A4" respectively. Care Ratings also downgraded its Rs 17,655 crore non-convertible debentures from ‘BBB-‘ to ‘D’ recently.
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CLSA said that the intervention of Reserve Bank of India. DHFL default can expose Rs 1 lakh crore in borrowing to the risk of default/haircuts Domestic rating agencies ICRA and Crisil on June 6.