The ratings have been affirmed due to an overall improvement in the macro-economic and funding situation
took three finance companies — Shriram City Union Finance
(SCUF), Shriram Housing Finance, and Magma Fincorp
— off the rating watch negative (RWN) status and affirmed rating on improvement in their financial profile. It also affirmed rating for Mahindra & Mahindra Financial Services (MMFSL).
For SCUF (AA), the agency said the rating affirmation and the resolution of the RWN reflect the improving trend in its collections over April-October. The ratings have been affirmed due to an overall improvement in the macro-economic and funding situation as well as a significant pick-up in its collections, it said. Shriram Housing Finance
(AA) is a subsidiary of Shriram City Union. The affirmation and resolution of RWN for HFC reflects a similar action on SCUF, India ratings
As for Magma Fincorp
(AA-), it said, the resolution of RWN factors in the fact that challenges on the funding front have been mitigated. The company’s liquidity is adequate to take care of its near-term obligations, India Ratings
For MMFSL (AAA), the agency said the company has a diversified funding profile with access to banks and capital markets. MMFSL maintained sufficient liquidity buffers to make timely debt repayments, even when collections declined, it said.