Moody's downgrades Indiabulls Housing Finance ratings to Ba2 from Ba1

Asset quality stress has also increased in the housing finance company

Moody’s has downgraded Indiabulls Housing Finance Ltd's (IBH) long term corporate family rating to Ba2 from Ba1, with a ‘negative’ outlook, which generally mean the ratings won’t improve in the next 12-18 months. The ‘Ba’ rating, as per Moody’s rating scale, is “judged to be speculative, subject to substantial credit risk.” 

“The outlook has been changed to negative to reflect the possibility that the tight funding conditions may persist for some time, which could further pressure other aspects of IBH's credit profile, such as profitability and asset quality,” the rating agency said in a statement.

This will complicate the matter for the