Intimation regarding change in credit rating by India Ratings & Research Private Limited
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Awaiting price reaction for this filing.
India Ratings & Research has downgraded Star Housing Finance's long-term ratings on its bank loan facilities (INR 4,500 million) and non-convertible debentures (INR 2,500 million) to IND D from IND BBB/Stable. The downgrade is due to delays in payment of term loan instalments to at least four lenders in February 2026, though all dues have since been paid. The liquidity strain was triggered by an NCD investor recalling their investment in December 2025 after the CFO's exit, and the company has been unable to fill the CFO role for over six months. The auditor also flagged adverse comments on liquidity in 9MFY26 provisional results, citing delays in salary payments. The rating was previously stable at IND BBB since at least May 2023, making this a sharp multi-notch drop.
This is a deeply negative signal for shareholders — the rating has fallen to IND D (default category), meaning the company's debt is considered to be in or near default. The company faces ongoing liquidity stress and continued pressure in meeting debt obligations, which could weigh heavily on the stock and signal deeper financial trouble ahead.