Intimation of change in credit rating from CARE Ratings Limited

Credit rating downgradedCredit rating at junk gradeCredit & Debt View source PDF Explain this filing

Price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reactionminutes from the announcement price · days from the prior close

-2.7%Reaction day

₹8.07

prior close

₹8.04

announcement price

After-mkt

timing

Nifty Microcap 250market · in no size index; the smallest one is used-1.3%-1.5% vs market

Housing Finance Company peers, median of 17sector-0.2%-2.5% vs sector

On the reaction day the stock moved 1.5 pts less than Nifty Microcap 250 and 2.5 pts less than its Housing Finance Company peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

+1.1

10m

+1.0

15m

+0.5

30m

+0.7

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

-2.7-1.3-1.5-0.2-2.5

Next day

-7.4-1.1-6.3+0.6-8.0

-11.3-0.8-10.4+0.7-12.0

-15.9-1.9-14.0-0.0-15.8

-19.7-4.1-15.6-2.8-16.9

-23.7-6.6-17.0-3.9-19.8

-25.3-5.7-19.5-4.0-21.3

15d

-43.4-6.4-37.0-4.4-39.0

-50.1-9.9-40.1-9.4-40.7

-2.0+3.8-5.8+4.1-6.1

-8.1+8.9-16.9+1.0-9.0

UpDownMarket · Nifty Microcap 250Sector · Housing Finance Company peers, median of 17Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

CARE Ratings has downgraded Star Housing Finance Ltd's ₹300 crore long-term bank loan facilities from 'CARE BBB-; Negative' to 'CARE D', its lowest/default grade. The downgrade follows delays of 1–11 days in term loan repayments to six lenders in February 2026, due to severe liquidity stress. The stress was triggered by an investor's accelerated redemption of non-convertible debentures (NCDs), recalled after the company's CFO resigned leaving the position vacant, despite no covenant breach. Liquidity crashed from ₹20 crore on December 30, 2025, to just ₹2.91 crore by February 19, 2026, against ₹17.6 crore in debt obligations due in March 2026. CARE noted the company failed to disclose the NCD recall to the rating agency or stock exchanges, and auditors flagged liquidity stress including delays in salary payments.

Likely market impact

This is a deeply negative development — the default rating triggers a likely breach of lending covenants, potentially accelerating further debt obligations and worsening the liquidity crunch. The stock could face sharp selling pressure, and the company may need emergency fundraising or asset sales to survive.