Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Stock Report

| More

ICRA upgrades ratings of CreditAccess Grameen Ltd

Posted On: 2018-09-10 13:03:35

ICRA has revised the long-term rating outstanding on the Rs.2,500.00 crore bank facilities, the Rs.887.00 crore NCD programme and the Rs.22.00 crore subordinated debt programme of CreditAccess Grameen Limited (CAGL or the company) to [ICRA]A+ (pronounced ICRA A plus) from [ICRA]A (pronounced ICRA A). The outlook on the long term rating has been revised to Stable from Positive. ICRA has also reaffirmed the short-term rating of [ICRA]A1+ (pronounced ICRA A one plus) outstanding on the Rs.200.00 crore commercial paper programme of the company.

The rating upgrade takes into account successful completion of CAGL's initial public offering (IPO) in August 2018 resulting in a strengthened capitalization profile; and sustained improvement in the company's operating performance which was driven by portfolio growth. The company raised fresh equity of Rs.630.0 crore through IPO which in ICRA's opinion would improve, the company's gearing to about 1.9x (on a managed basis) as in Aug-2018 and allow CAGL to pursue growth opportunities while maintaining a comfortable risk adjusted capital structure over the medium term. CAGL is expected to keep its leverage under control (around 4.5x times) going forward. CAGL has reported steady improvement in pre-provision profit driven by enhanced operating efficiencies. The company has a diversified funding profile, with funding relationship with close to 50 lenders; the above along with the favourable asset liability profile provides comfort from a liquidity perspective.

The assigned rating continues to factor in CAGL's established track record in the microfinance industry, its experienced senior management team and the company's efficient risk management and monitoring systems. Following the additional provisioning attributed to demonetization related delinquencies, the company's profitability was impacted during FY2017 (RoA3 of 2.3% in FY2017 as compared to 3.6% in FY2016); however, the same improved during FY2018 to 2.8% supported by lower credit costs.

At present, CAGL has presence in nine states viz, Karnataka, Maharashtra, Tamil Nadu, Madhya Pradesh, Odisha, Kerala, Goa, Puducherry and Chattisgarh; with Karnataka contributing to around 58% as on June 30, 2018. The ratings also take into account the company's monoline business and risks arising out of marginal profile of borrowers, unsecured nature of lending, and other risks associated with microfinance business. Going forward, the company's ability to maintain healthy asset quality indicators and capitalization as business expands would be key from a rating perspective.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

NBCC India Ltd secures business of Rs. 921.67 crore in August 2018

G E Shipping takes delivery of Secondhand Very Large Gas Carrier 'Jag Vasant'

RBI allows Rana Kapoor to continue as MD & CEO of YES Bank till Jan 31, 2019

Asian Paints Ltd announces sad demise of Shri Ashwin Choksi

CCI imposes penalty of Rs. 12.35 crore to Bajaj Hindusthan Sugar Ltd

Blue Coast Hotels Ltd hands over possession of Goa hotel to ITC

Shankara Building Products Limited opens its 134th Store

Allahabad Bank to raise Rs. 1500 crore through QIP in 2018-19

Manali Petrochemicals Ltd to commence supply of new products from Sep 19, 2018

HPL Electric Participates in 12th edition of 'Renewable Energy India Expo 2018'

Vaibhav Global Ltd allots 1666 shares

Kanpur Plastipack Ltd extends date for payment of final call money

Newgen Software Technologies Ltd signs agreement with HP for supply of software licences

Raghav Productivity Enhancers Ltd bestowed with Rajasthan Udyog Ratan Award 2018

Varroc Engineering arm forms JV with ELBA SA

Nucleus Software's lending software goes live at VietCredit Finance Joint-Stock Company

Glenmark Pharmaceuticals inducted into the DJSI Emerging Market 2018

HFCL bags purchase order worth Rs. 611 crore from BSNL

26 young people with type 1 diabetes successfully surmount 13,000 feet in 'India's 2nd T1D Challenge 2018'

TVS Motor Company strengthens its presence in Mexico

Brand Idea urges people for 'Responsible Use of Social Media' through the latest #MeriRealLife campaign

Bharti Foundation expands Quality Support Program to Karnataka

Ambuja Cement among the top 5 in global DJSI ranking-2018

Dish TV: D2H brand increases focus on South, launches new customer awareness TVC

Tata Steel Limited completes the acquisition of 51% equity stake in Creative Port Development Private Limited

Clariant Chemicals India Ltd updates on announcement from holding company

Lupin appoints Alok Sonig as CEO - US Generics and Global Head - Generics R&D & Biosimilars

KIOCL Ltd approves buyback of 1,25,88,235 equity shares at Rs. 170

IL&FS Transportation Networks Ltd arm gets claim from NHAI

Vyapar Industries Ltd approves sale of part investment in Beneficent Knowledge Parks & Properties Ltd

TI Financial Holdings Limited to change name

NIIT Technologies introduces Chain-m, a Blockchain powered solution for Airlines and its partners

Steel Strips Wheels Ltd announces resignation of CFO

RITES Ltd secures additional turnkey contract work for Rs. 436 crore

Sun Pharma announces receipt of European Commission approval for ILUMETRI® by Almirall

Tata iQ Selects TCS Jile™ to Drive Agile Transformation

ICICI Prudential Life and Saraswat Co-operative Bank sign bancassurance partnership

Woodpecker Distilleries & Breweries Private Ltd. launches Blackfort Lager Beer

DAC Approves Procurement of Equipment Worth Rs 9,100 Crores

ITI Limited Conferred with National Safety Awards

Future Market Networks Ltd completes acquisition of 50% in Future Retail Destination Ltd

Strides Pharma Science Ltd updates on USFDA inspection at Bangalore facility

Lime Chemicals Ltd appoints company secretary

Indian Hume Pipe Company Ltd receives LoA for Rs. 221.72 crore order

PNC Triveni Sangam Highways Pvt Ltd achieves financial closure

Financial Creditors initiate CIRP against Pratibha Industries Ltd

Bank of Baroda confirms intimation received on merger of Vijaya Bank and Dena Bank

L&T Construction Wins Orders Valued Rs. 2048 Crore

TVS NTORQ 125 crosses 1 lakh sales mark, launches new Metallic Red colour

Infosys updates on arbitration with former CFO Rajiv Bansal





Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018