CRISIL Ratings has upgraded its rating on the long-term bank facilities and non-convertible debentures of Poonawalla Fincorp Ltd (PFL) to ‘AAA/Stable’ from ‘AA+/Stable .
The rating on commercial paper has been reaffirmed at ‘A1+’.
The aforementioned ratings are for PFL’s bank loan facilities aggregating ₹2,000 crore, non-convertible debentures aggregating ₹3,000 crore and e Commercial Paper aggregating ₹1,500 crore.
CRISIL said the rating action is driven by the increased strategic importance of PFL to the Cyrus Poonawalla Group, whose flagship company is Serum Institute of India Pvt Ltd.
“This is in line with the group’s focus on domestic consumption as a key theme in their growth philosophy.
“Post the divestment of Poonawalla Housing Finance Ltd (PHFL), PFL will play a key role through which this strategy will be implemented in the areas of interest of the group -- consumer and MSME (micro, small and medium enterprises) financing through tech driven lending,” the agency said.
Read: Poonawalla Fincorp PAT up 88% on record disbursements, better asset quality
As per the business update for Q4FY23 given by the company, the AUM has increased further by 16 per cent Quarter on Quarter and 37 per cent Year on Year to reach ₹16,120 crore as on March 31, 2023.