DHFL's ratings were slashed after its liquidity dropped to Rs 2,775 crore as of end-April. Representative image
Rating agency CRISIL Ratings has downgraded commercial paper worth Rs 850 crore of Dewan Housing Finance Corporation driven by weak liquidity condition of the company.
DHFL's commercial papers were downgraded to A4+ from A3+. Its rating also continues to be on 'Rating Watch with Negative Implications'.
The mortgage lender's liquidity dropped to Rs 2,775 crore as of end-April.
"The downgrade is driven by more-than-expected reduction in the company's liquidity because of further delays in fund raising from sell down of project finance loans and lower inflows from securitisation of non-housing loans," the agency said in a note last week.