Moody's Investors Service
Moody's Investors Service
ANI/Twitter

MUMBAI: International rating agency Moody's on downgraded Indiabulls Housing Finance with a negative outlook, citing challenges in raising funds. It downgraded the corporate family rating (CFR) and foreign-currency senior secured rating of the company to B3 from B2. The foreign and local currency senior secured MTN programme ratings of the company has also been downgraded to (P)B3 from (P)B2.

The rating agency expects the company's asset quality to continue to weaken. "The downgrade and negative outlook reflect our expectation that Indiabulls' access to funding will remain challenging for longer than expected," Moody's said in a note.

The wholesale funding markets remain largely closed to many financial institutions following the imposition of a moratorium on Yes Bank as well as the broader risk aversion currently prevalent in financial markets globally.

"There is significant uncertainty around when Indiabulls will regain access to market funding," it said adding the company's reliance on asset sales as the primary source of liquidity to repay maturing obligations will increase. IHFLs loan book has been contracting since Dec 2018, and new disbursements have reduced significantly

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in