INSUBCONTINENT EXCLUSIVE:
Mumbai: Moody's Investors Service on Monday downgraded the corporate family rating (CFR) and the foreign-currency senior secured rating of
Indiabulls Housing Finance (Indiabulls) to B2 from Ba2, citing funding challenges for the company
The outlook on all ratings, where applicable, remains negative, it said.
The ratings agency also downgraded Indiabulls' foreign and local
currency senior secured MTN (medium term note) programme ratings to (P)B2 from (P)Ba2
The downgrade was driven by Indiabulls' ongoing challenging access to funding.
Governance considerations were also a key driver of the
to funding remains challenging, its pool of liquid assets, ability to run down the loan book and roll over of its bank funding act as a
buffer against this risk in the short term.
However, as the funding challenges prolong, liquidity buffers may erode and expose the company
impact on the credit profile by impeding access to funding
This is particularly so in the current context as there has been an increase in lenders' risk aversion towards Indian finance companies
added.
The ratings agency said the rejection by the Reserve Bank of India of this proposal is a credit negative.