India Ratings and Research has upgraded its debt rating on SBFC Finance to ‘IND AA- Stable’ from ‘Ind A+ Stable’ aided by the company’s improved ability to grow its franchise.The rating upgrade follows the listing of SBFC Finance’s shares on bourses.
The rating agency noted that the ability of the company to grow its franchise has been aided by its equity capital base after the listing in August.The rating upgrade also reflects the expectation of a further increase in the company’s scale of operations over the medium term which will drive operating leverage benefits, profitability and capital buffers.
Mumbai-based SBFC Finance provides loans to entrepreneurs, small business owners, self -employed individuals, salaried, and working-class individuals. Its assets under management stood at Rs 5,803 crore as on September 30.The rating upgrade opens up new avenues of debt funding for the company.