Indiabulls Housing Finance (IBH) shares fell nearly 10%, after rating agency Moody’s Investors Service downgraded the mortgage lender’s corporate family rating to ‘Ba2’ from ‘Ba1’.
The credit rating agency also changed its outlook to ‘negative’ from ‘stable’. The downgrade reflects renewed pressure on the cost and availability of funds for Indiabulls Housing Finance and certain other finance companies in the country. This presents a more challenging external environment than Moody’s had anticipated, Moody’s Investors Service further said. The outlook has been changed to negative to reflect the possibility that the tight funding conditions may persist for some time, which could further pressure other aspects of IBH’s credit profile, such as profitability and asset quality.
On the National Stock Exchange (NSE), Indiabulls Housing Finance shares opened lower at Rs 521.50 apiece and dropped to as much as Rs 498.00 apiece, marking a decrease of 9.67%. On the Bombay Stock Exchange (BSE), the share price of the company declined as much as 9.66 per cent to touch the Rs. 498 mark at the day’s lowest point.