Rating agency CARE Ratings has downgraded creditworthiness of Dewan Housing Finance Limited (DHFL) on debts of around 1 lakh crore issued by the company. This adds to the woes of the already suffering DHFL, that has faced a sharp drop in its share prices in the last one month.

A list of products has been downgraded that includes the non-banking finance company’s (NBFC) Rs 17,655 crore worth non-convertible debentures (NCDs) which have been downgraded to CARE AA+ from AAA earlier. Also, the Rs 29 thousand crores public issue of NCDs has also been downgraded to AA+ from AAA. DHFL’s long-term bank facilities worth Rs 42 thousand crores have also been downgraded to AA+.

A downgrading of these products may imply that the net asset value (NAV) of a scheme that holds a stake of around 5% in the portfolio may fall by less than 1%. DHFL has been working on measures to ease liquidity.

On the other hand, Crisil on February 2 has placed DHFL’s Rs 18,000 crore debt on “ratings watch with negative implications”.

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