ICRA assigns A1+ rating to short-term DP of FICCL

New Delhi, Mar 14 (UNI) Credit rating agency ICRA has assigned an A1+ rating to the Rs 100 crore short-term debt programme (including Commercial Paper) of First India Credit Corporation Ltd (FICCL).

The highest credit quality rating to short-term debt programmes, takes into account FICCL's ultimate parent namely Temasek Holdings and ICRA's expectation that the promoters would continue to provide financial and operational support to FICCL over the medium term.

ICRA also derives comfort from the experienced management team that has managed similar businesses, its proposed strong focus on systems and procedures including IT infrastructure, which is the bedrock for running and managing a business that is going to target small ticket and non-prime retail and commercial customers.

While ICRA concurs that there is a huge market opportunity in the non-prime segment, FICCL's ability to perform on the key operating and financial parameters is yet to be seen.

However, ICRA draws comfort from the expertise of its principal shareholders and their experience in managing similar business in other parts of the world.

The promoters have plans to infuse into FICCL, further capital as per the requirements over the next three years (42 million dollars capital infused as on date).

UNI RA SR DS1602