Saturday, November 28

Indiabulls Housing gets rating boost from Brickwork

NEW DELHI: Indiabulls Housing Finance on Tuesday said Brickwork Ratings has assigned short-term rating of A1 plus to the company, signifying adequate degree of safety and low credit risk.
The rating agency has reaffirmed the long-term rating at AA plus, suggesting high degree of safety and very low credit risk, according to a regulatory filing.

The rating committee of Brickwork Ratings has assigned short term rating at ‘BWR A1+’. The long term rating has been reaffirmed at ‘BWR AA+’, the company said in the regulatory filing.

The long term rating reaffirmation was on account of long-term liquidity position of the company, comfortable capitalisation, established market positions as one of the largest housing finance companies among others, it added.

The Brickwork A rating to an issuer signifies adequate degree of safety and low credit risk, and AA as of high degree of safety and very low credit risk.

The company’s total CRAR (capital to risk weighted assets) comfortably stood at 27.94 per cent with Tier 1 CRAR of 21.08 per cent, it said.
Experienced promoters and professional management and strengthening the corporate governance and credit practices of the company also helped in the reaffirmation of long term rating to AA+, Indiabulls Housing Finance said.

In a QIP closed on Monday, the company raised Rs 682.87 crore and another Rs 522 crore by selling partial stake in the UK-based OakNorth Bank in last few days, taking the total fund mop-up to Rs 1,205 crore.

Besides, in top management level changes last month, Indiabulls Housing Finance had appointed former RBI Deputy Governor S S Mundra as its non-executive chairman, who had joined the company’s board in 2018 as an independent director.

While, promoter and Executive Chairman Sameer Gehlaut stepped down and took over as the chief executive officer of another listed firm promoted by him — Indiabulls Ventures Ltd.

Indiabulls Housing Finance shares closed at Rs 185.85 apiece on BSE, down 1.87 per cent from the previous close.
Credit: Stocks-Markets-Economic Times

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