Fitch cuts Cholamandalam to AA-(ind)

Fitch Ratings said it downgraded Cholamandalam DBS Finance Ltd.'s national long-term rating to AA-(ind) from AA(ind) and its Rs.750 million subordinated lower tier 2 debt rating to AA-(ind) from AA(ind).

The outlook is revised to negative from stable.

The downgrade reflects the company's weak liability profile and evolving business strategy, Fitch said.

The challenging operating environment has led to rising delinquencies in the company's small ticket personal loans business and exposed a weakness in its funding profile, the agency said.

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