Shares of Indiabulls Housing Finance slumped over 9 percent on Wednesday after rating agency Moody’s Investors Service downgraded the company’s long term corporate family rating to Ba2 from Ba1. The stock price declined as much as 9.67 percent intraday to Rs 498, while the benchmark Nifty50 fell 0.61 percent to 10,961.95.

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The credit rating agency also changed the outlook to negative from stable and added that it does not expect the rating to go up over the next 12-18 months as it believes the tight funding conditions may persist for some time.

At 10:16 AM, Indiabulls Housing Finance shares traded 8.52 percent lower at Rs 504.35 per share on the NSE.

"The downgrade reflects renewed pressure on the cost and availability of funds for IBH and certain other finance companies in India. This presents a more challenging external environment than Moody's had anticipated," the agency said in a report.

The stock has fallen 35 percent in 2019 and 57 percent in the last 1 year.

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First Published:Aug 16, 2019 9:45 AM IST