ICRA assigns high quality rating to NCD of CDFL

New Delhi, July 20 (UNI) Credit rating agency ICRA today assigned LAA rating, indicating high credit quality, to the Rs 3500 million Non Convertible Debenture (NCD) programme of Cholamandalam DBS Finance Ltd (CDFL).

ICRA also assigned A1+ rating, indicating highest credit quality to the Rs 2,000 million short-term debt programme of CDFL.

The long-term NCDs have been retained at LAA while the medium term NCDs of CDFL and the Fixed Deposits have been reaffirmed at MAA+ (high credit quality).

The ratings factor in CDFL's increased focus in the CV markets, its good asset quality in this segment, moderate leverage and capitalisation on account of recent equity infusions, its financial flexibility on account of a diversified funding and its experienced and competent management. The ratings also take note of the pressure on CDFL's yields in the current climate of interest rate rises.

ICRA views positively the entry of DBS Bank Ltd as an equal partner with the Chennai-based Murugappa group in the company.

UNI SBA ARB PC2036