Star Housing Finance Ltd — Important, 23-02-2026: Company Update

Star Housing Finance's long-term bank loan facilities of ₹300 Cr have been downgraded to 'CARE D' from 'CARE BBB-; Negative' by CARE Ratings. This downgrade signals a default due to delays in debt obligations to six lenders, stemming from significant liquidity stress. The company attributes this to an investor's accelerated NCD redemption. While SHFL claims all overdues are cleared, its liquidity position remains poor. This rating change is critical as it will trigger breaches in lending covenants, potentially impacting the company's financial stability and future funding access.