Indiabulls Housing and Icra in legal tussle over rating

A legal battle has begun between Indiabulls and credit rating agency Icra, engulfing market regulator Sebi, whose outcome may decide whether corporates can escape downgrades as long as the lockdown and disruption caused by Covid-19 last. Indiabulls Housing Finance (IBHF) has filed a writ before the Delhi High Court, challenging Icra’s decision yet to be published to downgrade IBHF’s debt instruments and revise long-term outlook to ‘negative’ from ‘stable’ in the midst of a worldwide pandemic when “rights and obligations which have an economic impact and public effect are suspended”. The company has prayed that the court should restrain Icra from proceeding with the downgrade. Last week, the court directed Icra not to upload the revised rating on its website till the next hearing.