India Ratings downgrades PNB Housing Finance's NCDs from 'AAA' to 'AA+'

PNBHFL is among the top-five HFCs in India in terms of assets under management, with about a six per cent market share of housing loans

Credit rating agency India Ratings and Research has downgraded PNB Housing Finance Ltd’s (PNBHFL) non-convertible debentures (NCDs) from “AAA” to “AA+”.
 

This comes following a change in the approach for ratings. Now, the credit assessment is based on the credit profile of PNBHFL, as against the previous approach that factored in the credit strength of the sponsor, Punjab National Bank.

PNB owns 32.8 per cent stake in housing finance companies (HFCs).

This change in the ratings approach is in line with the weakened credit profile of the sponsor as well as its stated intention to divest its stake in the company.