DHFL Rating downgrade

By Niivo On 6 June 2019


Dewan Housing Finance has technically defaulted on NCD coupon payment/maturity due Tuesday of INR 1160 crores. The company was expecting receipt from few of the securitized transactions today which didn't come through & hence had to defer the payment.

It will partially make some payment on Thursday and have asked for a grace period of one week for the balance payment. It is expecting to soon receive money from securitization of retail loans (transactions already signed in) and is also anticipating receipt from sell-downs of 2 of its corporate accounts (of INR 600 crores)

Credit rating agencies have already downgraded DHFL debt to 'D' on this technical delay will lead to further mark down of debt funds today. We saw markdowns of even 50% on Tuesday. We advised our clients to exit from any DHFL linked Mutual Funds last week. For investors still stuck in these funds, the best course of action right now is to wait and watch.

Top MF Exposure to DHFL:

UTI MF: 2144 Cr

Reliance MF: 1488Cr

Axis MF: 772 Cr

Franklim MF: 572 Cr

L&T MF: 434 Cr

DHFL Pramerica: 375 Cr

AB Sunlife MF: 330 Cr

Kotak MF: 324 Cr

DSP MF: 311 Cr

BOI MF: 291 Cr