ICRA assigns LAA+ to long term subordinate bonds prog of KMBL

New Delhi, May 9 (UNI) Credit rating agency ICRA has assigned an LAA+ rating to the Rs 0.60 billion long-term subordinated bonds programme of Kotak Mahindra Bank Limited (KMBL).

The bank also has an LAA+ rating from ICRA for its outstanding Rs 2.40 billion long-term subordinated bonds.

The rating indicates high-credit-quality and the rated instrument carries low credit risk.

The rating factors KMBL's strong position in the commercial vehicle finance and improving franchise in the other retail asset segments such as personal loans and mortgage finance.

The agency also takes into account the improved capitalisation levels following the Rs 4.50 billion mobilised by the bank by way of Global Depository Shares in April 2006, the improving financial performance, and the ability of the bank to maintain its asset quality with negligible losses and delinquencies despite its greater focus on the non-salaried individual segment.

In addition, the rating derives comfort from the operational synergies with its subsidiaries operating in car financing, capital market and investment banking businesses.

ICRA has also noted the realignments of its car finance joint group ventures with Ford Credit International and the investment banking and broking ventures with Goldman Sacs Inc.

KMBL which was converted into a bank following the conversion of erstwhile Kotak Mahindra Finance Limited into a bank in March 2003, deals in banking, insurance, asset management, capital markets and private equity.

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