GFSPL’s ratings moved another notch up

GFSPL’s ratings on the long-term bank loans Rs 613.27 crore and non-convertible debentures to Rs. 378 crore upgraded to ‘BBB+’ from ‘BBB’.

Aug 04, 2014 07:08 IST India Infoline News Service

The rating of Grameen Financial Services Pvt Ltd has been upgraded by ICRA once again. Recently, GFSPL’s ratings on the long-term bank loans amounting to Rs 613.27 crore (enhanced from Rs. 413.27 Cr.) and non-convertible debentures amounting to Rs. 378 crore have both been upgraded to ‘BBB+’ from ‘BBB’. Along with these, the rating for Rs. 22 Cr. Subordinated Debt of GFSPL has also been upgraded to ‘BBB’ from ‘BBB –’.

As per ICRA, the upgrade reflects on factors including the improvement in the resilience of earnings, superior ability to scale up as well as strengthened capacity to control asset quality. GFSPL has been regular in servicing all its principal and interest obligations in a timely manner and there has not been any delay or default during the specified period. The outlook on the long term rating is stable.

ICRA’s rating scale instruments with ‘BBB’ rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk. The modifiers ‘+’ and ‘-‘reflect the comparative standing within the rating category.

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