Crisil assigns 'stable' rating to M&M NCD issue

CRISIL has assigned its 'L AA+/Stable' rating to Mahindra & Mahindra's Rs 5-billion 50-year non-convertible debenture issue.

This proposed debenture issuance by M&M will be the first 50-year plain-vanilla rupee-denominated instrument by an Indian corporate. This is indicative of the increasing confidence of investors in corporate India's long-term prospects. Long-term investors such as pension funds and insurance companies can use such long-tenure instruments to better align the duration of their portfolios.

Says Pawan Agrawal, Senior Director, CRISIL Ratings, "The issuance of such long-term instruments highlights the increasing depth and maturity of the Indian debt market. In the past, Indian corporates have looked towards international markets for such issuances. With the introduction of such long-term instruments, Indian corporates can now also tap the domestic markets for long-term funds. Such instruments will also enhance Indian corporates' financial flexibility to efficiently manage their funding profiles."