Bengaluru, September 28, 2017: India Ratings and Research (Ind-Ra) & Care Ratings Ltd. have announced an upgrade on the long term debt rating of Cholamandalam Investment and Finance Co. Ltd.'s (CIFCL). India ratings & Research have raised the Long-Term Issuer Rating to ‘IND AA+’ from ’IND AA’ with a stable outlook for NCD’s, Tier II debts and also assigned ‘IND AA’ on perpetual debt from IND ‘AA-‘.
Care Ratings Ltd upgraded the ratings of subordinate debt from ‘CARE AA’ to ‘CARE AA+’ (stable outlook) & perpetual debt from ‘CARE AA-‘ to ‘CARE AA’.
The upward revision is assigned for the improved profitability, and holding asset quality at the accepted levels in times of weak market operating cycles. Moving to 90+ DPD provisioning norms ahead of prescribed timelines, and consistent growth in business were also the drivers for this rating action. Chola also demonstrated its ability to generate funds, maintain a strong capital structure and a well matched asset liability maturity profile.
Speaking on the occasion, Mr. N Srinivasan, Executive Vice Chairman & Managing Director, CIFCL said, “The rating upgrade from India Ratings & Care Ratings confirms that our twin strategies to improve the profitability & asset quality are yielding results.”
The strong parentage of the Murugappa group along with a large Pan-India presence and a diversified loan portfolio have been viewed as some of the many positives for Chola’s rating upgrade.
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