Acuite downgrades long-term rating of secured convertible debentures of Edelweiss Financial Services to AA-

8 Aug 2022 , 10:39 AM

Acuité has downgraded the long term rating to ‘ACUITE AA-’ from ‘Acuite AA’ on the Rs.1900.00 crore secured Retail Non-Convertible Debentures of Edelweiss Financial Services Limited (EFSL). The outlook on the ratings continues to remain ‘Negative’.

The rating revision factors in the continuing weakness in the business profile of Edelweiss Group and the consequent deterioration in its earnings profile over the last 2-3 years which is expected to persist over the medium term.

Acuité believes demonstrating sustainable improvement in profitability and revenue streams in the evolving operating environment along with improvement in the asset quality would remain key rating monitorables.

At around 10:42 AM, Edelweiss Financial Services Ltd was trading at Rs57.50 per share up by Rs0.25 or 0.44% from its previous closing of Rs57.25 per share on the BSE.