CRISIL upgrades Poonawalla Fincorp’s long-term bank facilities and NCDs to ‘AAA/Stable’

CRISIL Ratings upgraded its rating on the long-term banking facilities and non-convertible notes of Poonawalla Fincorp Ltd (PFL) to AAA/Stable from AA+/Stable.

The rating on commercial paper has been reaffirmed at “A1+”.

The above ratings are for PFL bank loan facilities raising Rs 2,000 crore, Non-Convertible Notes accruing up to Rs 3,000 crore and Electronic Commercial Paper compilation Rs 1,500 crore.

CRISIL said the rating action is driven by the growing strategic importance of PFL to the Cyrus Poonawalla Group, which is the Serum Institute of India Pvt Ltd.

This is in line with the group’s focus on local consumption as a key theme in their growth philosophy.

“After the liquidation of Poonawalla Housing Finance Ltd (PHFL), PFL will play a major role through which this strategy will be implemented in areas of interest to the group – consumer finance and small and medium enterprises (micro, small and medium) through technology prepaid loans,” the agency said.

is reading: Poonawalla Fincorp PAT rose 88% thanks to record payments, and improved asset quality

As per the Q4FY23 business update provided by the company, assets under management increased by 16 per cent on a quarterly basis and 37 per cent on a year-on-year basis to reach Rs.16,120 crore on March 31, 2023.