Fitch affirms Dewan Housing

Fitch Ratings said it affirmed the national long-term AA(ind) rating of Dewan Housing Finance Corp. Ltd. The agency also affirmed the national ratings of the India-based company's AA(ind) Rs. 2 billion non-convertible debentures, AA(ind) Rs. 2 billion fixed deposit program and F1+(ind) Rs. 200 million short-term debt program.

The outlook is stable.

The agency said the ratings reflect Dewan's long and consistent track record in its niche in the housing finance business.

The ratings are constrained by the company's small size and limited financial flexibility compared with its competitors, Fitch said. Rising interest rates, intense competition and any downturn in the economic cycle that affects borrowers' capacity to repay and reducing collateral values could contribute to a more difficult operating environment for the housing finance industry going forward. Fitch said any significant deterioration in the company's operating performance could put downward pressure on its ratings.

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