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| IDFC falls 5% on BSE on downgrading of rating by Crisil |
| Press Trust of India / Mumbai Jul 22, 2009, 18:09 IST |
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Infrastructure Development Finance Company (IDFC) today fell over five per cent on the Bombay Stock Exchange after the rating agency Crisil downgraded its long-term debt on concerns over delay in mobilising funds.
IDFC settled the trade at Rs 132.25, down 5.64 per cent from its previous close on the BSE. During the day, the scrip had dipped seven per cent to touch a low of Rs 130.35.
A similar trend was seen on the National Stock Exchange, where the stock ended the day at Rs 132.20, down 5.67 per cent from its last close. During the day, it had touched a low of Rs 130.15, down 7.13 per cent.
Over 6.49 crore shares of the infrastructure financing firm changed hands on the two stock exchanges.
Crisil has downgraded IDFC's rating on the long-term debt instruments to AA+ from AAA. Instruments rated 'AA+' are judged to offer a high degree of safety with regard to timely payment of financial obligations and is one notch down than the highest rating AAA.
"The downgrade primarily reflects the delay in IDFC's capital-raising. As a result, the institution’s capitalisation is likely to remain short of Crisil's earlier expectations, and well below the levels that supported the earlier rating," the rating agency said in a release today.
"...Delay in capital infusion, in combination with increased disbursements, will result in a reduction in IDFC’s capitalisation ratios over the medium term," it said.
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