Brickwork downgrades outlook on Edelweiss NCDs

Mumbai: Edelweiss Financial Services said Brickwork Ratings has revised the outlook on its Rs 50 crore non-convertible debenture (NCD) programme to ‘negative’ from ‘stable’, while re-affirming the credit rating of BWR AA+.

“As of date, no debt is outstanding pursuant to this rating and, accordingly, the rating remains unutilized,” Edelweiss said in a notice to BSE.

Last week, ICRA had cut Edelweiss Financial’s long-term NCD rating to AA- from AA with a negative outlook.


ICRA cited higher vulnerability for Edelweiss in the financial firm’s wholesale lending book, with heightened risk profile of assets from real estate and structured debt.

“The rating downgrade reflects increased vulnerability in Edelweiss Group’s wholesale lending book with heightened risk profile of the underlying assets, comprising real estate and structured debt transactions across sectors, and the consequent rise in stressed exposures,” the firm had said in its rationale.

Icra had pointed out the outlook of non-banking finance companies is likely to be constrained in the near to medium term due to investors’ risk-averse sentiment and their inability to mobilise resources as their outlook is expected to remain constrained over the near to medium term.

Shares of Edelweiss Financial closed 1.9 per cent higher at Rs 172.15 on Wednesday, while BSE’s 30-share Sensex closed 0.2 per cent higher at 39,908.