ICRA reaffirms high credit rating to IHFL's subordinated debt prog

New Delhi, Nov 13 (UNI) Credit rating agency ICRA today reaffirmed LAA rating, indicating high credit quality and low credit risk, to the Rs 60 crore subordinated debt programme of IDBI Homefinance Limited (IHFL).

ICRA has also assigned A1+ rating to the Rs 500 crore Short-Term Debt Programme of IHFL. The rating indicates highest-credit-quality rating assigned by ICRA to short-term debt instruments.

The ratings take into consideration IHFL's strong parentage by Industrial Development Bank of India Ltd (IDBI), which has utstanding ratings of LAA+, MAA+ and A1+ from ICRA, its substantially improved funding profile, favourable asset quality, improving profitability and its comfortable capital adequacy.

While ICRA has also noted the relatively lower seasoning of IHFL's mortgage portfolio on account of being a late entrant into the mortgage finance market, the rating is supported by the high financial flexibility that the company enjoys as a wholly-owned subsidiary of IDBI.

IHFL's asset base stood at nearly Rs 1,710 crore as on March 31, 2006. During the quarter ended June 30, 2006, IHFL reported a total income of Rs 38.6 crore and net profit of Rs 4.8 crore as compared to Rs 109.8 crore and Rs 14.42 crore respectively for the financial year 2005-06.

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