Billionaire Banned From Markets Increases DLF Risk: India Credit
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The risk of India’s biggest property developer reneging on its debt in the year has surged to a 2009 high after it was barred from capital markets by the regulator.
The median probability of nonpayment by DLF Ltd. jumped as high as 0.33 percent this month from 0.21 percent at the end of September, according to the Bloomberg default risk model, which is based on factors including share performance and debt metrics. The company and its billionaire Chairman Kushal Pal Singh were barred from raising funds by the Securities and Exchange Board of India, or SEBI, on Oct. 13 for failing to disclose information during its 2007 initial public offering.