A1+ rating assigned to short-term programme of KSL
New Delhi, Oct 23 (UNI) Credit rating agency ICRA has reaffirmed A1+ rating to the Rs 1,300 crore short-term debt programme and LAA rating to the Rs 50 crore long-term debt programme of Kotak Securities Ltd.
The rating indicates highest credit quality rating assigned by ICRA to short-term debt instruments. Instruments rated in this category carry the lowest credit risk in the short term.
The LAA rating to the long-term debt programme has been assigned for high credit quality and low credit risk.
The ratings factor in KSL's strong institutional and retail equity broking business, its adequate capitalisation, strong liquidity and the sound risk management systems employed by the company.
KSL's financial performance, however, is sensitive to brokerage income, which is dependent on domestic capital market cycles.
The ratings also factor in the strong parentage of Kotak Mahindra Bank Ltd and the groups' favourable experience in capital market related activities.
KSL, besides sharing the group name, is of strategic importance to Kotak group, which in ICRA's opinion makes likelihood of support highly likely in case it is required.
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