DHFL shrugs off CRISIL's credit rating downgrade, gains 11% from day's low

CRISIL has downgraded rating on DHFL's commercial paper from "A3+" to "A4+" on concerns over the more-than-expected reduction in liquidity.

Dewan Housing Finance Corporation (DHFL) shares rose 6 per cent at Rs 118 on the BSE, even as rating agency CRISIL downgraded rating on the company's commercial paper from “A3+” to “A4+” on concerns over more-than-expected reduction in liquidity. The rating continues to be on 'Rating Watch with Negative Implications'.

The stock has recovered 11 per cent from its early morning low of Rs 106 on the BSE. A combined 16.3 million shares changed hands on the counter on the NSE and BSE till 12 pm.

The downgrade is driven by more-than-expected reduction in the company's liquidity because