India Ratings and Research (Ind-Ra) has migrated Star Housing Finance Limited’s (SHFL) non-convertible debentures and bank loan facilities to the ‘IND D (ISSUER NOT COOPERATING)’ category. This action follows SHFL’s non-participation in the rating exercise, indicating potential default and advising investors to exercise caution.
Credit Rating Downgrade Due to Non-Cooperation
India Ratings and Research (Ind-Ra) has announced a significant change in the credit ratings for Star Housing Finance Limited (SHFL). Both the company’s Non-convertible debentures and Bank loan facilities have been migrated to the ‘IND D (ISSUER NOT COOPERATING)’ rating category.
Details of the Rating Action
The non-convertible debentures, with a size of issue at INR 2,500 million, and bank loan facilities amounting to INR 4,500 million, have been impacted by this rating action. Ind-Ra cited the issuer’s non-cooperation in the rating exercise as the primary reason for the downgrade. This implies that the issuer did not provide adequate information or engage in detailed management interaction with Ind-Ra during the review period.
Implications for Investors
As per the press release dated August 21, 2026, Ind-Ra advises investors and other users to exercise appropriate caution when using these ratings. The agency’s policy on non-cooperation indicates that the ratings are based on the best available information, and the current outstanding rating might not reflect SHFL’s true credit strength. Furthermore, the press release noted that the company is presently under default, as confirmed by the debenture trustee.
Instrument-Wise Breakdown
The migration to the ‘Non-Cooperating Category’ applies to specific instruments, with the rating action being a migration to the non-cooperating category. This reflects a lack of engagement from SHFL in providing necessary disclosures and updates to the rating agency, a critical step in maintaining an accurate credit assessment.
Historical Rating Context
Historically, SHFL’s instruments were rated at ‘IND D’ with a stable outlook in February 2026. Prior to that, ratings were higher, such as ‘IND BBB/Stable’, indicating a gradual deterioration in the credit profile and communication with rating agencies over time.
About Star Housing Finance Limited
Star Housing Finance Limited (erstwhile Akme Star Housing Finance Limited) is a housing finance company that provides retail and mortgage loans to the affordable segment. The company’s operations are spread across 35 branches, serving both salaried and self-employed customers.
Source: BSE
