ICRA assigns 'A1' rating to Rs 300 cr debenture programme of RFL

New Delhi, Oct 12 (UNI) Credit rating agency ICRA today assigned 'A1' rating to Rs 300 crore short term non convertible debenture programme of Religare Finvest Ltd (RFL).

Earlier, RFL had an outstanding rating of 'A1' for Rs 275 crore short term debt programme.

The rating for the enhanced amount takes into account RFL's rapidly growing financing business volumes, its adequate risk management systems and its profitable operations.

The rating also draws support from the parentage of the promoters of Ranbaxy Laboratories Ltd and the continuous managerial and financial support demonstrated by them, including the letter of comfort provided by Ranbaxy Holding Company Limited (RHCL), whereby RHCL has committed to subordinate the unsecured loans amounting to Rs 100 crore given to RFL till the above rated debt is outstanding in RFL's books.

RFL has also received a fresh equity infusion of Rs 20 crore and preference share capital of Rs 25 crore (redeemable in 5 years) from its holding company Religare Enterprises Ltd in March 06.

The rating also factors in the close synergies between RFL and Religare Securities Ltd (formerly Fortis Securities Ltd) which is the stock broking arm of Religare group.

The rating is however constrained by RFL's vulnerability to stock market performance, its relatively short track record and the small scale of its operations.

UNI KR DKS VV1633