Ind-Ra upgrades CreditAccess Grameen's Debt instruments' rating to ‘IND AA-'; stock marginally down

29 Jun 2022 , 02:38 PM

CreditAccess Grameen Limited informed that the rating agency India Ratings and Research Private Limited has upgraded the ratings assigned to the company’s debt instruments.

The company has upgraded the rating of long-term bank loans worth Rs2,000 crore to ‘IND AA-’, and has given a Stable outlook for the same. Further, it has also upgraded the rating of Non-Convertible Debentures worth Rs100 crore to ‘Ind AA-’ and a Stable Outlook.

CA Grameen’s improved geographical diversification, ability to manage asset quality as demonstrated during the pandemic and other systemic events in recent years, and the tailwinds of a supportive regulatory environment all contribute to the upgrade in the rating.

The company’s industry-leading franchise in the non-banking financial companies-micro finance institutions (NBFC-MFI) segment, experienced management, healthy operating performance, and above-average capital buffers are also factors in the rating.

Ind-Ra observes that the company has implemented certain operating practices that may provide strong operational control and oversight as well as a faster response to emerging issues.

At around 2.41 PM, CreditAccess Grameen was trading at Rs1,000.55 down by Rs3.55 or 0.35% from its previous closing of Rs1,004.10 on the BSE. The scrip hit intraday high and low of Rs1,003.80 and Rs988.65 respectively.