CreditAccess Grameen Ltd. has been downgraded from 'buy' to 'sell' by Goldman Sachs due to concerns about the company's asset quality and earnings outlook.

Goldman Sachs has set a revised target price of Rs 564 per share, which represents a 42% decrease from the previous close of Rs 1,426. The stock has experienced a significant decline of over 40% in the past year, with a notable drop of more than 6% on November 29.

Analysts at Goldman Sachs believe that the company's earnings visibility is uncertain due to ongoing asset quality issues, which they view as a structural de-rating. They anticipate further stress in the microfinance sector, driven by industry-wide over-leveraging and the company's portfolio. The recent quarter saw a significant decline in asset quality, which was seen as a negative surprise, and it is expected that this trend will continue, especially with the introduction of new regulatory measures.