DHFL tanks 15% on credit rating downgrade; stock hits over 5-year low

Shares of Dewan Housing Finance Corporation (DHFL) tanked 15 per cent to Rs 95, hitting an over five-year low on the BSE in early morning trade after rating agencies downgraded its commercial papers (CP), citing delays in debt servicing. The stock was trading at its lowest level since December 23, 2013 on the BSE.

Rating agencies CRISIL and Icra have assigned ‘D’ rating to DHFL’s commercial papers, anticipating a default, while CARE Ratings marked D, or default, the housing finance firm’s all long-term facilities, including public NCDs of Rs 29,000 crore and fixed deposits of Rs 8,940 crore. Brickwork