Icra downgrades Edelweiss Financial Services’ long-term NCDs

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Published: June 27, 2019 1:07:29 AM

Edelweiss Financial Services in an exchange filing said that the company does not have any outstanding amount against above rated debt instruments, hence, the ratings have been withdrawn.

icra, Edelweiss Financial ServicesThe rating agency has revised the ratings to AA- with a negative outlook from AA for NCDs amounting to the total of Rs 466 crore and withdrew the long-term rating of the same along with short-term rating of the Rs 100 crore short-term NCD and Rs 6,350-crore commercial paper of EFSL.

Rating agency Icra on Wednesday downgraded Rs 466-crore long-term non-convertible debentures (NCD) of Edelweiss Financial Services (EFSL) citing vulnerability in the company’s lending book.

The rating agency has revised the ratings to AA- with a negative outlook from AA for NCDs amounting to the total of Rs 466 crore and withdrew the long-term rating of the same along with short-term rating of the Rs 100 crore short-term NCD and Rs 6,350-crore commercial paper of EFSL.

“The ratings have been withdrawn at the request of EFSL and on the receipt of a no objection certificate/no dues certificate from the debenture trustee and issuing and paying agent,” the agency mentioned in the report.

Edelweiss Group’s wholesale lending book has turned more vulnerable with the heightened risk profile of the underlying assets, comprising real estate and structured debt transactions across sectors, and the consequent rise in stressed exposures, Icra said in the rationale.

Edelweiss Financial Services in an exchange filing said that the company does not have any outstanding amount against above rated debt instruments, hence, the ratings have been withdrawn.
Given the close linkages between the Edelweiss Group entities, Icra has taken a consolidated view and downgraded long-term NCDs of its other subsidiaries also.

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