Mumbai: Crisil Ratings has assigned an ‘AA+’ rating with a stable outlook to GIC Housing Finance’s non-convertible debentures worth ₹500 crore.
The rating agency also reaffirmed its ‘AA+’ assessment on the company’s NCDs worth ₹500 crore and ₹430 crore. Both instruments carry a stable outlook.
Long-Term Bank Facilities Retain AA+ Rating
Crisil reaffirmed its ‘AA+’ rating with a stable outlook on GIC Housing Finance’s long-term bank facilities valued at ₹8,100 crore.
The Mumbai-based housing financier’s short-term bank facilities worth ₹1,000 crore also retained their ‘A1+’ rating.
An ‘AA+’ rating indicates a high degree of safety regarding the timely servicing of financial obligations. A stable outlook suggests that the rating agency does not expect a material change in the company’s credit profile over the medium term.
Rating Withdrawn After NCD Redemption
Crisil Ratings withdrew its rating on another ₹600 crore of non-convertible debentures after receiving independent confirmation that the instruments had been fully redeemed.
The agency said the withdrawal was carried out in accordance with its policy governing the removal of ratings after repayment of the rated debt.
The move does not indicate a downgrade or deterioration in GIC Housing Finance’s credit quality because the securities are no longer outstanding.
What The Rating Action Covers
The rating action covers the newly rated NCDs, two existing NCD issues, long-term bank facilities and short-term borrowing arrangements.
Together, the reaffirmations provide investors and lenders with an assessment of the company’s ability to meet its debt obligations.
GIC Housing Finance Shares Rise
Shares of GIC Housing Finance closed at ₹139.35 apiece on the National Stock Exchange on Friday, gaining 2.5% during the session.
The rating announcement was disclosed to the stock exchanges on Saturday. Investors may track the company’s borrowing costs, asset quality, liquidity position and housing loan growth for further cues on its financial performance.
