Credit rating agency Crisil downgraded its rating on the commercial paper (CP) of Dewan Housing Finance Corporation Limited (DHFL) to D from A4+, citing delays in debt servicing.

"The downgrade reflects delays in debt servicing by DHFL on some of its non-convertible debentures (NCDs) - not rated by CRISIL - because of inadequate liquidity. The payments were due on 4 June," said Crisil.

A Livemint report said that the NBFC had reportedly defaulted on paying interest on over Rs 900 crore bonds on 4 June. The report citing a source at DHFL further said that the company has a cure period of seven working days to meet its obligation, post which the non-payment of the said debt will be considered as a 'default.'

Another rating agency ICRA also downgraded its rating on the DHFL's paper to D from A4, implying that the company was in default or expected to be in default soon, a Reuters report said. It is ICRA's fourth rating cut this year.

According to a Bloomberg report, the DHFL instruments that were downgraded to D include long term bank facilities worth Rs 42,713 crore, fixed deposits worth Rs 8,940 crore and debt instruments worth Rs 50,910 crore.

Shares of DHFL fell as much as 18.3 percent to Rs 91.30 apiece, its lowest level since December 2013. This is the second time this year that the stock has fallen below the Rs 100/share price level.