CARE rating upgrades Pudhuaaru Financial’s long term and short term rating
Hyderabad, October 5, 2018: Pudhuaaru Financial Services Private Limited (PFSPL), a non- deposit taking NBFC engaged in providing financial services in remote areas (Dvara Group), recently received upgrade for its long and short-term rating from CARE ratings. Its rating improved from BBB- to BBB for its long-term rating and A3 to A3+ for its short-term rating with stable outlook.
The revision in ratings assigned to the bank facilities of Pudhuaaru Financial Services Private Limited factors is due to the significant increase in the scale of operations, improvement in financial performance of the company and asset quality in the past two years ended 31st March 2018 and improvement in capitalization with equity infusion of Rs 30 crore through rights issue in September 2018. The rating continues to draw strengths from benefits derived being part of Dvara Group, experienced management team, robust information technology, adequate capital adequacy and liquidity profile. The rating also considers strong operational linkages with its parent company (IRCS; IFMR Rural Channels and Services Private Limited), financial profile of IRCS and the proposed restructuring of the companies at the group level.
Commenting on this achievement Mr. Samir Shah, Executive Vice Chair & Group President of Dvara Trust said, “We welcome CARE Rating upgrade as it reflects our conscious effort to rapidly gain market share yet build a sustainable growing business model with a keen eye on strong asset quality. This rating will further increase stakeholders’ trust in the organisation.”
According to the credit rating agency’s rating definition, instruments with ‘BBB’ are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.