The shares in Dewan Housing Finance Corporation Limited (DHFL) declined substantially during intraday Tuesday after the credit rating agency ICRA downgraded the company’s commercial papers to A2+ from A1+ citing its incapability to raise money and generate new business.
The rating was for outstanding Commercial Papers of only Rs1,525-Cr out of a total rated sum of Rs8000-crore, which forms less than 2percent of the company’s outstanding borrowings.
ICRA has rated only the short-term instruments of the company, viz commercial papers. After repayment of the outstanding CP of Rs1,525-crore, DHFL will not have any outstanding commercial paper rated by ICRA, it said.
At 2.45pm, the Stock of DHFL was trading at Rs130.90 per share, down 4.28percent, while the BSE Sensex was at 36,139, down by 74 points on Tuesday and Nifty50 down at 10878 down just 1.25 point.