ICRA downgrades Piramal Capital's loans, bonds from "AA+" to "AA"

Fund raising a challenge in risk averse market

Rating agency ICRA has cut ratings for Piramal Capital and Housing Finance Ltd's (PCHFL) bonds, term loans and debentures from "AA+" to "AA" on increasing challenge to raise money in risk averse environment. 

This impacts the financial flexibility. These challenges stem from the current operating environment and the risk averse sentiment of investors towards non-banks, particularly wholesale-oriented financiers. 

PCHFL has witnessed increase in its cost of borrowings, during recent months, along with shortening of tenor for its commercial paper (CP) borrowings, ICRA said in a statement.

The resilience of PCHFL's business model to such external shocks will depend on its