Crisil downgrades Hudco bonds, FD

The Credit Rating Information Services of India Ltd (Crisil) has downgraded state-run Housing and Urban Development Corporation’s (Hudco) bonds and fixed deposits on Tuesday to ‘AA-’ and ‘FAA’ from ‘AA’ and ‘FAA+’ respectively. This represents a drop within the ‘high safety’ grade. The agency cited the firm’s increasing exposure to weaker credit quality state governments and entities as a reason for the rating revision. “The financial health of several of these state governments has been worsening,” Crisil said in a statement.

Kerala tops the list of defaulting states which owe money to Housing and Urban Development Corporation (Hudco). The state has an outstanding amount of Rs 1927.75 crore and Rs 347.33 crore as default. Hudco has an outstanding of Rs 18,138.43 crore and a default of Rs 1,545.39 crore with all state governments. Among other states which owe Hudco over Rs 100 crore are Andhra Pradesh, Assam, Jharkhand, Maharashtra and Manipur.