DVARA KGFS RECEIVES RATING UPGRADE FROM ICRA
Hyderabad, August 8, 2019: Credit rating agency ICRA today upgraded the long-term rating of Dvara KGFS one notch up from BBB- to BBB. The rating upgrade is for both the Line of Credit (LOC) and Subordinated Debenture Programme of Dvara KGFS, with the outlook on the long-term rating set at stable.
The rating upgrade comes on the back of a recent equity infusion of 97 crores in April 2019, which allowed the company to diversify its operations into newer geographies, strengthen its presence in existing geographies and solidify its capital base for further growth. The rating upgrade reinforces the strong collection efficiency witnessed across Dvara KGFS operations and is an affirmation of the management team’s ability to execute the company’s growth plans while maintaining its strong financial position.
Commenting on the rating upgrade, Joby C O, Chief Executive Officer, Dvara KGFS, said "This upgrade by ICRA is an endorsement to the credibility that the Company has earned based on its performance in the past many years, and a strong risk framework that has been put in place. This rating upgrade is hugely positive in the current market and an acknowledgement to the management’s clear intent and focus on performance. This helps to reinforce the confidence the banks have put on us. We are hoping that this helps our fund-raising effort in the next quarters. "
Highlighting the importance of the upgrade, Samir Shah, Executive Vice-Chair & Group President of Dvara Trust, said "Dvara KGFS is a key part of the Dvara Group with a mission to be the preferred financial partner to rural households in India. We are delighted to see its progress, excited about its future as a truly unique deep rural holistic customer-centric financial services business model and thankful to all our partners who support KGFS in its journey to help underserved rural households to achieve their aspirations."