Crisil retains rating on Rs 15,000-cr commercial paper of Dewan Housing Finance
Crisil on Friday retained A1+ rating on Rs 15,000 crore commercial paper (CP) programme of DHFL, whose stocks have been under pressure due to concerns over default
New Delhi: Crisil on Friday retained A1+ rating on Rs 15,000 crore commercial paper (CP) programme of DHFL, whose stocks have been under pressure due to concerns over default.
Crisil has reaffirmed its credit ratings, DHFL said in a regulatory filing to stock exchanges.
A1 rating instruments are considered to have very strong degree of safety regarding timely payment of financial obligations.
Such instruments carry lowest credit risk, as per the definition by Crisil.
Earlier this week, DHFL said it proposes to reduce exposure to CP as part of overall borrowing plan and increase hedging activity, days after the shares of the company tumbled up to 42 percent on massive selling over fears of a liquidity crisis.
The company expects liquidity to remain tight in second half with volatility in rates.
DHFL resolution plan: Lenders want Kapil Wadhawan to step down as chairman and managing director of cash-strapped firm
The promoter would also be required to pledge a part of their remaining stake to lenders. Promoter group holding in DHFL is 39.21 percent
RBI not in favour of providing special credit window for NBFCs, says liquidity crunch not sector-specific phenomenon
According to the sources, the RBI is of the view that a special window is not required as of now based on their assessment.
Crisil noted that IBHFL continues to maintain strong liquidity with cash and cash equivalents at around 20% of total assets as of 10 October 2019