ICRA reaffirms A1+ rating for IDBI Capital's Rs 500 cr STD prog
New Delhi, Mar 27 (UNI) Rating agency ICRA has reaffirmed the A1+ rating for the Rs 500 crore Short-Term Debt Programme of IDBI Capital Market Services Ltd (IDBI Capital) indicating highest credit quality.
The rating factors in IDBI Capital's strong market position in the Primary Dealer business, besides the company's sound internal prudential norms, adequate risk management systems, and experienced senior management.
The rating reflects the company's sound financial position, characterised by high net worth, which enabled it withstand the impact of adverse movement in interest rate in 2004-05.
While the rating also recognises the market risks intrinsic to the PD business, the liquid nature of the company's portfolio and its large counter-party limits with other money market participants for call and repo borrowings, besides the Reserve bank of India's (RBI's) continued liquidity support to PDs, provide comfort.
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