Market volatility challenge to PNB HFC's equity plans, says ICRA

The capital market bloodbath due to the Covid-19 outbreak poses a challenge to PNB Housing Finance’s plan to raise Rs 1,700 crore in equity capital in the near term. 

Also, further delay in fundraising will postpone the expected improvement in the leverage profile and limit the cushion available for absorbing contingencies, according to rating agency ICRA.

The agency has downgraded rating for HFC’s non-convertible debentures and tier II bonds from “AA+” to “AA” due to weakening of its asset quality, especially in the wholesale loan portfolio”.  The rating revision factors in delays in its fundraising plan along with the lower-than-expected planned equity