Moody's affirms Indiabulls HFC's B3 rating; upgrades outlook to 'stable'

The Moody's affirmation is driven by Indiabulls' strong capital, comfortable liquidity, declining profitability and weak asset quality

Rating agency Moody's on Tuesday upgraded the outlook on Indiabulls Housing Finance Ltd's rating to “stable” from “negative”, reflecting a stabilisation in access to funding.

It also affirmed the B3 rating of Indiabulls corporate family rating and foreign-currency senior secured ratings.

The affirmation is driven by Indiabulls' strong capital, comfortable liquidity, declining profitability and weak asset quality.

Capital is the key credit strength, with a tangible common equity/tangible managed assets ratio of 18.3 per cent as of FY21-end. This ratio will remain at these levels over the next 12-18 months, driven by a declining balance sheet, Moody’s said in a