Moody's downgrades Indiabulls to B2 on fund raising challenge, governance

Rating agency says continued decline in on-balance sheet loans is a reflection of its funding challenges

Global rating agency Moody's has downgraded Indiabulls Housing Finance Ltd's  corporate family rating (CFR) and the foreign-currency senior secured rating from "Ba2" to "B2".

The downgrade is driven by Indiabulls' ongoing challenges in accessing to funds. Governance considerations were also a key driver of this rating action.

The company's access to funding remains challenging. The continued decline in on-balance sheet loans is a reflection of its funding challenges, Moody's said in a statement.

While access to funding remains challenging, its pool of liquid assets, ability to run down the loan book and roll over of its bank funding act as