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HDFC AMC takes 35% markdown on Simplex exposure after rating falls to 'D'

HDFC Credit Risk Fund had Rs 124 crore of exposure to the NCDs of the company

Jash Kriplani  |  Mumbai 

CARE Ratings
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HDFC Asset Management Company took a 35 per cent markdown on its exposure to Simplex Infrastructures, after its (NCDs) were downgraded to ‘D’ by CARE Ratings. HDFC Credit Risk Fund had Rs 124 crore of exposure to of the company.

Last month, the fund house had taken a 15 per cent markdown when the company’s were downgraded from ‘BBB’ to ‘BB+’, which is a below-investment grade. The 35 per cent-markdown was taken as the regulations require any secured exposure to infrastructure sector to be marked down by 50 per cent, if the rating is downgraded to ‘D’ grade.

A note issued by the fund house showed that the impact on the net asset value of HDFC Credit Risk Fund was 0.3 per cent, as a result of the latest markdown.

First Published: Thu, December 12 2019. 20:26 IST
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