ICRA assigns A1+ rating to debt programme of Cholamandalam DBS

NEW DELHI: Rating agency ICRA on Tuesday assigned highest rating (A1+) to the enhanced short-term debt programme of Rs 1,000 crore of Cholamandalam DBS Finance, a non-banking finance company of Murugappa group.

This is the highest credit quality with positive outlook, ICRA said in a release.

The rating reflects the low refinancing risk for the company derived from access to diverse funding sources and unutilised bank lines, it said.

The rating is based on the strengths the company derives from its shareholders Murugappa Group and Singapore -based DBS Bank, in the form of committed financial, operational and management support, it added.

ICRA has taken note of strong expansion plans of the company with a significant change in portfolio mix in favour of higher yielding unsecured loans.

In another such exercise ICRA downgraded the rating assigned to the Rs 8 crore partially convertible debenture programme of The Waterbase Ltd (TWL) from 'LBB' to 'LB'.

The rating indicates high credit risk and the increased risk profile of the company because of declining sales and margins since the last two years due to imposition of anti- dumping duty by US Department of Commerce on Shrimp exports from India.

TWL is in the business of aquaculture promoted by Vikram Thapar group.