S&P rates Dewan Housing BB

Standard & Poor’s said it assigned a BB long-term issuer credit rating to Dewan Housing Finance Corp. Ltd.

The outlook is stable.

The rating reflects the company’s adequate capitalization, average earnings and sound risk-management practices, S&P said.

The company’s high reliance on wholesale borrowing, small size and limited diversity temper these strengths, the agency said.

Similar to other financial institutions operating in India, the company benefits from the country’s low economic imbalances, intermediate private sector leverage and moderate competition, S&P said.

But these financial institutions are exposed to challenges posed by a low-income economy, weak foreclosure law and lack of access to central bank funding, the agency said.

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