Last updated: 26 Nov, 2020 | 08:39 am
Moody’s has raised concerns over the credit ratings of IndiaBulls Housing Finance and IIFL Finance in its latest report. You have exposure to some of the bonds issued by these companies.
What is the concern?
INDmoney had alerted users to exit their investments in IndiaBulls Housing Finance, after rating agency Moody’s downgraded its issuer rating from B2 to B3 on 24th March 2020. Even last week (Nov 18th), we had raised concerns that Indiabulls Housing Finance has a 4.99% equity stake in beleaguered Lakshmi Vilas Bank, whose shares are going to go down to zero. We re-iterate that you exit your holdings in this company.
We had alerted users to exit their exposure in IIFL Finance in April this year after Moody’s had warned of downgrading the ratings on the company. Eventually, Moody’s downgraded the Corporate Family Rating of IIFL in September to B2 (from B1). We re-iterate that you reduce your exposure/ exit your investments in the company.
Invest only in debt funds that have a 100% allocation to AAA-rated papers and a low modified duration. Please find your exposure to these high-risk companies through mutual funds.