Companies

CARE reaffirms DHFL’s debt instruments credit ratings

Our Bureau Mumbai | Updated on September 22, 2018 Published on September 22, 2018

dhfl

Dewan Housing Finance Corporation Ltd (DHFL) on Saturday said CARE Ratings has re-affirmed the credit ratings on its various debt instruments and bank facilities aggregating Rs 1,28,624 crore.

The rating re-affirmation comes in the backdrop of the DHFL stock falling 42 per cent on Friday due to reports that it is facing 'liquidity pressure'. The housing finance company has informed the stock exchanges about receipt of a letter from CARE Ratings about the re-affirmation of credit ratings.

Explaining the turn of events on Friday relating to DHFL, its Senior Vice President S Govindan said, “Something has triggered this. There could have been an overbought position by someone, who could not sustain, leading to bulk sell out (of shares). And going by the IL&FS liquidity problem, some MF facing redemption pressure triggered sale pressure on our NCDs (we are one of the largest borrowers in the NCD market) to meet their liquidity requirements. That has given a wrong impression that DHFL is facing a liquidity pressure.”

The last NCD that DHFL raised was at 8.90-9.10 per cent, which was very much in keeping with the market rate at that point in time, said Govindan. “Now, if somebody is going to sell our paper at 11 per cent or so yield as a one-off transaction in the secondary market because of their liquidity requirement that has somehow given an impression that our company is borrowing at a very high rate so there is pressure on liquidity. But it is not so,” he added.

Published on September 22, 2018
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