Crisil, ICRA give lowest rating to DHFL's commercial paper (updated)

ICRA

05/06/2019 15:39

(Adds details, company response, background)
    June 5 (Reuters) - Ratings agencies ICRA and Crisil
downgraded Dewan Housing Finance Corp Ltd's (DHFL)  DWNH.NS 
commercial paper to their lowest ratings on Wednesday after the
lender missed certain payments on bonds due this week.
    This was Crisil's fifth rating cut on the company's paper
this year and ICRA's fourth, highlighting the problems in
India's shadow banking sector that has struggled since a series
of defaults at Infrastructure Leasing and Financial Service Ltd
last year.  urn:newsml:reuters.com:*:nL4N1WH20Z
    ICRA cut its rating on the company's paper to  ICRA D from
 ICRA A4, while Crisil downgraded to 'CRISIL D' from 'CRISIL
A4+', implying that the company was in default or expected to be
in default soon.
    "The downgrade reflects delays in debt servicing by DHFL on
some of its non-convertible debentures (NCDs) - not rated by
Crisil - because of inadequate liquidity," Crisil said https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/Dewan_Housing_Finance_Corporation_Limited_April_17_2019_RR.html.
    Economic Times reported https://economictimes.indiatimes.com/markets/stocks/news/dhfl-fails-to-pay-rs-1000-cr-interest-on-bonds-talks-on/articleshow/69658664.cms
 on Wednesday that DHFL had missed a deadline on interest
payment on some outstanding bonds. 
    DHFL is in talks to meet its over 10 billion rupees 
($144.19 million) obligation before the seven-day grace period
and its financing could come in by the end of this week, the
report also said.
    The lender, which stopped taking new deposits and blocked
premature withdrawals last month, said it was taking steps to
make the payment on time and that the delay did not amount to a
default.  urn:newsml:reuters.com:*:nL4N22Y1PQ

($1 = 69.3510 Indian rupees)

 (Reporting by Chandini Monnappa in Bengaluru; Editing by
Subhranshu Sahu and Anil D'Silva)
 ((chandini.m@thomsonreuters.com; +91-82-6749-7919; Reuters
Messaging: chandini.m.thomsonreuters.com@reuters.net))