ICRA assigns LAA rating to KMPL's Rs 800 cr debenture prog

New Delhi, Apr 4 (UNI) Rating agency ICRA has assigned a LAA rating to the proposed Rs 800 crore debenture programme of Kotak Mahindra Prime Ltd (formerly Kotak Mahindra Primus Ltd).

ICRA has also reaffirmed the LAA rating and the MAA+ rating, indicating high credit quality to the debentures and medium term debt programmes of Kotak Mahindra Prime Ltd (KMPL).

The ratings factor in KMPL's position as one of the leading players in the car financing business, favourable asset quality, strong risk management skills and comfortable capital adequacy.

The ratings also take into account the group strengths, realignment of the shareholding wherein the Kotak group has increased its stake in KMPL to 100 per cent from the earlier 60 per cent and the operational synergies with the group especially Kotak Mahindra Bank (KMBL).

The ratings also consider the improving operating cost structure on account of discontinuation of the contractual royalty payments, higher scale of operations and the recent diversification into other business areas such as lending against collateralized securities and purchase of distressed assets from banks.

UNI SS SR HT1542