Moody’s rates India Infoline Finance Ba3

Moody’s Investors Service said it assigned a first-time Ba3 corporate family rating to India Infoline Finance Ltd. The outlook is stable.

India Infoline Finance’s Ba3 CFR is driven by the company’s stable and healthy solvency profile, including its asset quality, profitability and capital. The rating also considers India Infoline Finance’s modest but steady funding and weak liquidity, Moody’s said.

The rating is supported by the company’s diversified, low-ticket and retail-focused loan book, which has resulted in relatively stable asset performance. In addition, the company’s well-developed technology platform supports its underwriting.

About 14% of the company’s loans are exposed to riskier segments including small and mid-corporate segments in the form of loans to developers (13%) and loans for capital market activities (1%). The company is reducing its corporate loans. In the fiscal year ended March 2019, the company sold and exited the commercial vehicle lending business, and it is currently running down its medical equipment lending business.

© 2015 Prospect News.
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