CRISIL downgrades rating on DHFL commercial paper over liquidity concerns

Flags concern on dwindling liquidity; stock down 4.6%

CRISIL has downgraded rating on the commercial paper of Dewan Housing Finance Corporation Limited (DHFL) from “A3+” to “A4+” on concerns over reduction in liquidity. The rating continues to be on 'Rating Watch with Negative Implications'.

DHFL's stock closed 4.64 per cent lower at Rs 110.95 on BSE.

The downgrade is driven by more-than-expected reduction in DHFL’s liquidity due to further delays in fund raising from sell down of project finance loans and lower inflows from securitisation of non-housing loans, CRISIL said in a statement on Monday.

Additionally, DHFL, as a strategic decision, did not resort to securitisation of readily