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CARE Ratings has upgraded the long-term credit rating of Manappuram Finance Ltd (MAFIL) to CARE AA (double A) stable from CARE AA- (double A minus) stable. The revised credit rating applies to the Rs.5,680-crore long-term bank facilities of the company and its NCD issues aggregating to Rs.580 crore.
A press release said that the revision in the long term rating factors in the significant improvement in financial performance of the company during FY17, primarily supported by its focus on shorter tenure loans, leading to lesser under-recovery. The profitability in FY17 is also aided by growth in AUM and decline in the cost of borrowings in trend with industry.
Earlier, on July 14, Brickwork Ratings upgraded the long-term credit rating of Manappuram to BWR AA (double A) stable from BWR AA- (double A minus) stable.