DHFL declines 8% as ICRA downgrades its commercial papers

The stock dipped 8 per cent to Rs 125 on the BSE in early morning trade after the rating agency ICRA downgrades the company's commercial papers (CPs) worth Rs 8,000 crore to 'A2+' from 'A1+'.

Shares of Dewan Housing Finance Corporation (DHFL) slipped 8 per cent to Rs 125 apiece on the BSE in early morning trade after rating agency ICRA downgraded the company’s commercial papers (CPs) worth Rs 8,000 crore to ‘A2+’ from ‘A1+’.

DHFL, however, said that the rating action by ICRA is not merit based at all. It has not taken cognizance of DHFL’s intent to extinguish CPs by end of March and the fact that it is in advanced stages of fund-raising transactions.

ICRA said the rating revision takes into account the moderation in the company’s financial flexibility owing