PNB Housing Finance said on Friday that Crisil has re-affirmed credit rating of its bank borrowing and non-convertible debentures (NCDs) at AA and fixed deposits at AA-plus.
The rating agency has, however, revised the outlook from stable to negative. The rating on short-term non-convertible debentures is reaffirmed at A1-plus.
Crisil said the current outlook revision reflects the delay in the capital raise and impending financial flexibility due to the sharp drop in share price to raise the earlier stated quantum of around Rs 1,500 crore to 1,700 crore.
The company also faces a heightened risk of slippages in the wholesale book due to COVID-19 linked lockdown, weak economic activity and its implications on the real estate segment.
The ratings also factor in the brand-sharing benefits that PNB Housing derives from its parentage of Punjab National Bank, its largest shareholder.
On the liability side, the Reserve Bank of India (RBI) announced regulatory measures under the COVID-19 regulatory package under which lenders were permitted to grant a moratorium on bank loans.
However, PNB Housing has not applied for a moratorium from any of its lenders. From a funding perspective, even amid the current challenging environment with lenders exercising caution in increasing exposures.
Crisil said PNB Housing managed to raise over Rs 33,000 crore from April to December 2019. More pertinently, it raised through diversified routes including bank loans, non-convertible debenture, refinance from National Housing Board, external commercial borrowings and retail fixed deposits.
As on April 3, the company had debt repayments of Rs 7,249 crore till June against which it has cash and cash equivalents of Rs 6,670 crore and sanctioned and unutilised bank lines and securitisation lines of Rs 6,115 crore.
( With inputs from ANI )