You are here: Home » Companies » News
Business Standard

Crisil downgrades DHFL's commercial papers to 'default' from A4+

The downgrade comes after reports of default by the company in paying interest to the tune of Rs 900-1,000 crore of NCDs

Press Trust of India  |  Kolkata 

Dewan Housing Finance
Dewan Housing Finance

Rating agency on Wednesday downgraded commercial papers (CP) of troubled Dewan Housing Finance Corporation Ltd (DHFL), citing delays in debt servicing.

downgraded the CP of the housing finance firm to 'D' (Default) from 'A4+', it said in a release.

has Rs 850 crore of outstanding CPs of which Rs 750 crore is due in June, the rating agency said.

"The first CP maturity is on June 7, 2019. With liquidity inadequate as on date to service debt and visibility very low on timely fund raising, expects the CP to be in default on maturity," the release said.

The downgrade comes after reports of default by the company in paying interest to the tune of Rs 900-1,000 crore of NCDs, which were due on June 4.

"The downgrade reflects delays in debt servicing by on some of its non-convertible debentures (NCDs) not rated by CRISIL because of inadequate liquidity. The payments were due on 4 June," Crisil said.

officials were unavailable for comments. In May, too, Crisil had downgraded its rating on DHFL's commercial papers to 'A4+' from 'A3+', citing more- than-expected reduction in the company's liquidity.

First Published: Wed, June 05 2019. 21:45 IST
RECOMMENDED FOR YOU