ICRA reaffirms A1+ rating to SBICap's short-term debt prog

New Delhi, Dec 28 (UNI) ICRA today reaffirmed its A1+ rating to the Rs 50 crore short-term debt (including commercial paper) programme of SBI Capital Markets Limited (SBICap).

The rating indicates highest-credit-quality rating assigned by ICRA to short-term debt instruments. The highest safety rating takes into account SBICap's strong parentage, its sound capitalisation and its position as one of the leading investment banking companies in the country.

Although earnings from the intensely competitive merchant banking business are contingent on activities in the capital markets, ICRA expects SBICap to be able to leverage its strong franchise and parentage to meet competition and maintain earnings.

The fund-based business of the company is limited to treasury activities. ICRA expects SBICap to make the internal norms strict including risk management systems coupled with its relatively high networth to enable it withstand the risks inherent in its treasury business.

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