ICRA downgrades Indiabulls Housing long-term ratings to AA+ from AAA

The realty sector has been hit by subdued sales and rising challenges on the funding front, said ICRA

Credit rating agency ICRA has downgraded mortgage lender Indiabulls Housing Finance’s (IBHL) long-term debt instruments to AA+ from AAA, on account of rising woes for non-banking financial companies (NBFCs) and housing finance companies (HFCs). 

The NBFC and HFC sectors have been plagued by increase in cost of funds and prolonged squeeze in liquidity. The rating of IBHL remains under watch with “developing implications” in light of its merger proposal Laxmi Vilas Bank. 

“While the scheme has received approval from the Competition Commission of India, key approvals from regulators including the Reserve Bank of India (RBI), are still pending,” said ICRA.

The revision in ratings