IIFL Finance shares fell by 5% on Wednesday following reports of a potential credit rating downgrade.
According to ET Now, a local agency plans to reduce IIFL’s credit rating from AA to AA- due to the impact of a gold loan ban. Additionally, the company may be forced to cut more than 9,000 employees if the ban persists.
As of 10:15 am, IIFL Finance shares were trading at ₹502.40, reflecting a significant decline amid the uncertainty surrounding the company’s operations.
Indian shadow lender IIFL Finance Ltd is at risk of a credit rating downgrade as early as this week due to an unresolved months-long regulatory ban on its gold loan business, according to Bloomberg.
A local rating agency has notified the company of a potential rating downgrade from AA to AA-, said the sources, who requested anonymity as the details are private.
