India: SKS Micro Finance Credit Rating Upgraded

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Jun 2014
India, June, 17 2014 - SKS Microfinance Limited is among the largest micro finance companies in India with presence across 15 states covering 1 lakh villages

The country's sole listed micro finance company SKS Microfinance Limited on Tuesday informed the bourses that its credit rating for bank borrowings has been upgraded by a rating agency to Al+ from Al for short-term facilities and to A+ from A for long-term facilities for an aggregate sum of Rs 2,000 crore.

As of May 31, 2014, the company's borrowings stood at Rs 1,456.19 crore, it informed the bourses.

According to the rating agency, short-term debt instruments with Al + rating are considered to have a very strong degree of safety regarding timely payment of financial obligations. Such instruments carry the lowest credit risk. Meanwhile, long-term debt instruments with A+ rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry a low credit risk.

The company pointed out that the upgrade is expected to have a positive impact in terms of reduction in the cost of borrowing in the future.

SKS Microfinance Limited is among the largest micro finance companies in India with presence across 15 states covering 1 lakh villages. The states include Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala and Punjab.



 

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