DHFL: CARE re-rating non-merit based, irrational

Rajesh Kurup Mumbai | Updated on March 07, 2019 Published on March 07, 2019

DHFL Chairman and Managing Director Kapil Wadhawan. File Photo   -  BusinessLine

CARE Ratings revised some of DHFL’s long-term ratings

Dewan Housing Finance Corporation (DHFL) has expressed concern over CARE’s re-rating of its long-term debt instruments. “DHFL reiterates its steadfast commitment to all its financial responsibilities. The company expresses concern and alludes to it as a non-merit based and entirely irrational decision,” DHFL Chairman and Managing Director Kapil Wadhawan said in a statement.

“Over the last few months, DHFL has accelerated the process of realigning the ownership and management to bring in a broad-based professional ownership with the aim of enhancing stakeholders’ confidence. The company has engaged with large potential entities to identify and onboard the right strategic partner and are in advanced stages of discussions to achieve the same over the next 90 days,” he said.

“We would like to reiterate that DHFL continues to honour timely repayments of all its financial obligations as it takes several steps to re-establish normalcy into the business. We are taking all remedial measures to protect the interests of our stakeholders with transparent communication at every stage and we continue to service all our obligations since September 2018,” Wadhawan said, adding, the company continues to be “well-capitalised” and have sufficient retail assets, which it can securitise further to preserve liquidity and service all its financial commitments.

CARE Ratings on Thursday revised some of DHFL’s long-term ratings. DHFL shares, which fell 5 per cent in morning trade, pared losses and was trading down 2.52 per cent at Rs 145.05 at about 11.24 am on Thursday.

Published on March 07, 2019
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