For Quick Alerts
For Daily Alerts

3 Finance Companies Taken Off India Ratings' Negative List

By Staff

India Ratings has taken off three finance companies, namely Shriram City Union Finance (SCUF), Shriram Housing Finance, and Magma Fincorp, off its rating watch negative (RWN) status and affirmed the rating on improvement in their financial profile.


The ratings and research agency has also affirmed rating for Mahindra & Mahindra Financial Services (MMFSL).

3 Finance Companies Taken Off India Ratings' Negative List

India Ratings said that the rating affirmation of "AA" for Shriram City Union Finance and the resolution of the RWN reflect the improving trend in its collections over April-October. An overall improvement in the macro-economic and funding situation, as well as a significant pick-up in its collections, have aided the affirmation in rating.

Shares of SCUF pared gains made in early sessions and declined over 1%.

The affirmation and resolution of RWN on Shriram Housing Finance (AA), a subsidiary of Shriram City Union, is a reflection of similar action on SCUF, India ratings said.

For Magma Fincorp (AA-), it said the resolution of RWN factors in the fact that challenges on the funding front have been mitigated. The company's liquidity is adequate to take care of its near-term obligations, India Ratings said.


Shares of Magma Fincorp also cleared gains seen in the morning session and was trading 2.33% lower at Rs 44.10.

For MMFSL (AAA), the agency said the company has a diversified funding profile with access to banks and capital markets. MMFSL maintained sufficient liquidity buffers to make timely debt repayments, even when collections declined, it said.

Shares of Mahindra & Mahindra Financial Services opened lower and declined nearly 3.5% in the morning trade session.

Story first published: Thursday, December 10, 2020, 10:51 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X