Shares of Indiabulls Housing Finance cracked almost 10 percent in the morning trade on August 16, after rating agency Moody's Investors Service on August 14 downgraded its long-term corporate family rating to Ba2 from Ba1 and changed its outlook to negative from stable.
Besides, the rating agency downgraded the company's foreign-currency senior secured rating to Ba2 from Ba1, foreign and local-currency senior secured medium-term note (MTN) program ratings to (P)Ba2 from (P)Ba1.
Moody’s attributed the downgrades to the pressure on cost and availability of funds for Indiabulls Housing, similar to other financial firms of the country.
The outlook was changed to negative in the light of liquidity crunch for the company, which the rating agency thinks may continue for some time and will exert pressure on the company’s profitability.
Indiabulls Housing reported muted numbers in the quarter ended June 2019. Net profit fell 24 percent YoY at Rs 802 crore versus Rs 1,055 crore.
At 0935 hours, the scrip was quoting Rs 504, down 8.58 percent on the BSE.
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