CRISIL Ratings has also withdrawn its ratings on the commercial paper programme of Rs4850cr in line with its withdrawal policy.
The rating reaffirmation factors in the group’s adequate capitalisation levels, supported by multiple capital raises, and its diversified business profile.
The continuation of the ‘Negative’ outlook reflects the challenges on profitability and asset quality that the group has been facing largely on account of stress on its wholesale lending book. The retail lending book was also impacted amid the Covid-19 pandemic. Trends in profitability and asset quality in the medium term will be key monitorables.
For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of EFSL, its subsidiaries and associates in the wealth management business. This is because all these entities have significant operational, financial, and managerial linkages and operate under a common Edelweiss brand.
At around 12:18 PM, Edelweiss Financial was trading at Rs97.25 apiece up by Rs1.1 or 1.14% on Sensex.