CARE has upgraded its rating on the long-term debt instruments of Indiabulls Housing Finance Ltd (IBHFL) to ‘CARE AAA’ from ‘CARE AA+’. Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
CARE stated that “the revised ratings factor in IBHFL’s strong financial and business performance and the growth prospects of mortgage finance business in India coupled with position of IBHFL to benefit from the same. It also takes into consideration the induction of reputed independent directors. The rating also considers IBHFL’s comfortable capitalization level, diversified resources profile, good asset quality, experienced management and comfortable liquidity profile”
Mr. Gagan Banga, Vice Chairman & MD, Indiabulls Housing Finance Limited commented on the upgrade stating, “AAA from CARE underlines our efforts of upholding strong corporate governance values and maintaining transparency in all our processes. It is a reaffirmation to our stakeholders of our commitment to maintain stability and sustainability in our growth.”
IBHFL is the second company in India amongst private sector HFC’s/NBFC’s to enjoy a AAA rating from CARE and to also be rated at AA+ or above by both CRISIL & ICRA. In a span of last two months, IBHFL has been upgraded by all the four major rating agencies including ICRA, CRISIL, CARE & Brickwork Ratings.
About Indiabulls Housing Finance
IBHFL is India’s 2nd largest Housing Finance Company in the private sector with a balance sheet size of Rs. 46,359 crore. It has a network of 205 branches, and a sales team of about 2,000 dedicated and trained employees. It provides quick, convenient and competitively priced home loans to both salaried and self-employed customers. For the fiscal year ending March 2014, the company reported PAT of Rs.1,568.6 crore.