New Delhi, July 28: Credit rating agency ICRA today assigned the highest safety 'MAAA' rating to the Rs 20 crore medium term debt of Citicorp Maruti Finance (CMFL). ICRA factored the CMFL's strong parentage and the support from Citigroup in the form of management, credit appraisal skills, information systems and sharing of infrastructure facilities, the credit rating agency said in a statement here.
It also took into account that the CMFL, a 74:26 joint venture of Citicorp Finance (India) and Maurti Udyog, could maintain asset quality, apart from having favourable asset liability maturity profile and adequate capital adequacy.
"Although CMFL is exposed to concentration risk as it finances only MUL vehicles, this is mitigated by Maruti's dominant position in domestic car market, which is likely to continue in the medium term," ICRA, however, noted.
In an another rating exercise, ICRA reaffirmed an highest safety 'LAAA' rating to Rs 50 crore non-convertible debenture of Associate India Financial Services (AIFSL), a fully owned subsidiary of Citicorp.
AIFSL's main activities involve financing of cars (both new and old), consumer durables, two wheelers, personal loans and loans against existing residential property. Bureau Report