Icra cuts ECL Finance debt instruments’ ratings

Mumbai: Ratings agency Icra on Wednesday downgraded ratings of all debt instruments of Mumbaibased ECL Finance with ‘negative’ outlook, citing increased stress in the wholesale portfolio and deterioration in the asset quality.

Various debt instruments including bank lines, non-convertible debentures, principal protected market-linked debentures and subordinated debt programme, among others, worth just above Rs 35,000 crore have been downgraded from ‘AA-’ to ‘A+’ with negative outlook.

ECL Finance is a wholly-owned subsidiary of the Edelweiss Group. Shares of Edelweiss Financial Services ended 1.8 per cent lower at Rs 35.30 on the BSE on Wednesday.


“Edelweiss Group’s gross nonperforming assets (GNPAs) increased to 2.76 per cent of total advances as of December 31, 2019 from 1.87 per cent as of March 31, 2019,” Icra said in a note.