CRISIL downgrades PNB Housing Finance's deposits rating to 'AA+' from 'AAA'

PNB Housing's fund-raising ability has remained intact over the last 6-9 months and it is continuing to maintain high on-balance liquidity.

Rating agency CRISIL downgraded ratings for PNB Housing Finance Ltd’s (PNB Housing) fixed deposits from “AAA” to “AA+” over weakening of asset quality after many big-ticket developers defaulted on payments. Also, the size of equity raising planned is lower than earlier envisaged.

The rating agency in a statement said the long-term rating was downgraded from “AA+” to “AA”. It also revised the outlook on the long-term ratings to 'Stable' from 'Negative'.

Earlier in July 2019, CRISIL had revised the rating outlook to 'negative' due to concerns over leverage metrics, moderation in capital adequacy ratios and increased vulnerability of asset quality