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Tata Homefinance Rs 100 cr debt gets `A1+` despite merger
New Delhi, Nov 14: Rating agency Icra today assigned highest safety rating `A1+` to the Rs 100 crore short term debt of Tata Homefinance Ltd, which has been taken over by IDBI recently.
New Delhi, Nov 14: Rating agency Icra today assigned highest safety rating "A1+" to the Rs 100 crore short term debt of Tata Homefinance Ltd, which has been taken over by IDBI recently.
The rating agency also downgraded Madras Fertilisers Ltd (MFL) Rs 14.82 crore non-convertible debenture issue and fixed deposits and retained DCM Shriram Consolidated Ltd's (DSCL) "A1+" rating on Rs 100 crore commercial paper issue.
Referring to Tata Homefinance, Icra said, "Comfortable asset quality, financial flexibility imparted by its undrawn loans and financial support from IDBI provide comfort."
Tata Homefinance has been taken over by IDBI and the name of the company would be changed to IDBI Homefinance after getting the nod from registrar of companies shortly.
In the case of Madras Fertiliser, Icra downgraded its NDC issue to substantial risk "LC" from "LB" and fixed deposit issue to "MC" from "MB".
This was on account of increase in financial risk profile of the MFL resulting in a strained debt servicing ability due to weak capital structure and poor liquidity, Icra said.
Icra retained DSCL's commercial paper issue worth Rs 100 crore as it noted that the restructuring exercise would not affect its business.
Referring to Tata Homefinance, Icra said, "Comfortable asset quality, financial flexibility imparted by its undrawn loans and financial support from IDBI provide comfort."
Tata Homefinance has been taken over by IDBI and the name of the company would be changed to IDBI Homefinance after getting the nod from registrar of companies shortly.
In the case of Madras Fertiliser, Icra downgraded its NDC issue to substantial risk "LC" from "LB" and fixed deposit issue to "MC" from "MB".
This was on account of increase in financial risk profile of the MFL resulting in a strained debt servicing ability due to weak capital structure and poor liquidity, Icra said.
Icra retained DSCL's commercial paper issue worth Rs 100 crore as it noted that the restructuring exercise would not affect its business.