ICRA Upgrades Long Term Credit Rating of Satin Creditcare Ltd

Satin Creditcare Network Limited (SCNL), a leading microfinance institution in India, has received an upgrade in its credit rating by ICRA for the Long Term Bank Facilities, Sub-debt and NCDs from A- (Stable) to A (Stable).

The credit rating upgrade is an outcome of the Company's enhanced performance and strengthened capitalization, driven by strong improvement in recent quarters and a successful capital raise. The stable outlook on the long-term rating reflects the opinion of rating agencies that the company will be able to maintain a steady credit profile while expanding its scale of operations and keeping a prudent leverage profile.

This revision comes close to the recent capital infusion of Rs. 250 crore via QIP. As the Company continues its impressive growth trajectory, this infusion of capital serves as a pivotal catalyst, providing the fuel necessary to accelerate and actualize its further expansion plans.

As on Q2 FY24, SCNL has recorded a growth of 33% in AUM year on year basis and also ventured into new territories to break the geographical concentration.

Commenting on this remarkable achievement, Mr. HP Singh, CMD of Satin Creditcare Network Limited, expressed his gratitude and contentment, saying, "We are delighted by the credit rating upgrade, affirming the strong performance our Company demonstrated across successive quarters. This further reassures us of the growing scale and diversity of our business, the quality of our cash flows and strong balance sheet. This upgrade will contribute to a reduced cost of funds for SCNL, aligning with the company's commitment to serve its borrowers and further the cause of financial inclusion in rural hinterlands. Simultaneously, it is poised to elevate confidence levels among all our stakeholders."

Shares of Satin Creditcare Network Limited was last trading in BSE at Rs. 242.35 as compared to the previous close of Rs. 252.80. The total number of shares traded during the day was 122252 in over 2848 trades.

The stock hit an intraday high of Rs. 256.00 and intraday low of 241.30. The net turnover during the day was Rs. 29992550.00.

Source : Equity Bulls

Keywords

SatinCreditcareNetwork INE836B01017 RatingUpdate Upgrade