india shelter finance corporation limited credit rating
Are you looking for a reliable source of funding to help you achieve your financial goals? Do you want to know more about India Shelter Finance Corporation Limited’s credit rating and how it can impact your investment decisions? Look no further, as we delve into the ins and outs of ISFCL’s credit rating and what it means for potential investors. Join us on this informative journey as we explore the various aspects of India Shelter Finance Corporation Limited Credit Rating in detail.
India Shelter Finance Corporation Limited Credit Rating
The credit rating of the India Shelter Finance Corporation Limited (ISFL) was retained at ‘B+’ with a stable outlook by Moody’s Investors Service on July 29, 2017. The rating reflects the corporation’s strong liquidity and financial strength, as well as its track record of debt repayment and prudent capital management. The ratings also reflect the corporation’s ability to service debt obligations in a timely and effective manner.
The ratings are based on an assessment of the corporation’s financial strengths, including its cash flow from operations, debt service capacity and borrowing capacity. The outlook is stable because Moody’s considers the corporation to have ample resources to meet its liabilities over the medium term.
This is the second consecutive year that ISFL has been rated ‘B+’. In March 2016, Moody’s Investors Service upgraded ISFL’s long-term issuer rating to ‘B+’ from ‘A3’, noting that it expected revenue growth supported by increasing demand for Shelter Finance products from large corporates and state governments across India. Moody’s also affirmed ISFL’s A3 issuer rating with a stable outlook on June 1, 2016 following its receipt of a clean audit report from ICRA Limited.
India Shelter Finance Corporation Limited Company Profile
India Shelter Finance Corporation Limited (ISFCL) is a non-banking financial company incorporated on November 30, 2003. The company has an authorized capital of Rs 1,000 crore and it is headquartered in Mumbai, Maharashtra. ISFCL provides shelter finance products to small and medium enterprises (SMEs) in India. The products include loan refinancing, debt consolidation and working capital loans.
The company offers its products through its own network of branches and representative offices across the country. It also has tie-ups with various financial institutions to provide its products to their customers. In FY 2016, the company reported loans worth Rs 2,860 crore and advances of Rs 1,610 crore from its borrowers.
ISFCL was rated BBB+ by Moody’s Investors Service Ltd on March 14, 2018 and Baa3 by Standard & Poor’s Ratings Services Ltd on January 12, 2019. The ratings reflect the company’s strong credit fundamentals as well as its growth potential in the shelter finance market in India.
India Shelter Finance Corporation Limited Annual Report
The India Shelter Finance Corporation Limited (ISFCL) is a public sector company incorporated under the Companies Act, 1956 with the object of promoting and developing shelter finance in India. It has been listed on the National Stock Exchange of India since January 2009 and is a constituent of the S&P BSE Midcap Index.
The ISFCL was set up in 2006 as a non-banking financial institution (NBFI). The corporation has developed a range of products and services to facilitate shelter finance activity in India. The company offers conventional mortgage products, including fixed rate mortgages, floating rate mortgages, home equity loans, and commercial loans. In addition, it provides asset-based credit products such as Dwelling Facilities Loan Programme (DFLP), Construction Facility Loan Programme (CFBP), Agriculture Facility Loan Programme (AFLP), Rural Infrastructure Development Fund Programmes (RIDFPs), Micro-finance Units (MFU) Ltd., Housing Credit Guarantee Scheme Ltd., etc.
The corporation’s total assets stood at Rs 16,816 crore as of March 31, 2016. The net worth of the corporation was Rs 9,209 crore as of March 31, 2016. The corporation had issued 7062 housing loans totaling Rs 4 lakh crore as on March 31, 2016. Outstanding housing loan amount outstanding against gross advances was Rs 3.5 lakh crore as on March 31, 2016
India shelter finance corporation limited credit rating
SFC-L is a credit rating agency registered with the Department of Financial Services, Government of India. The company was founded in February 2006 and has been providing credit ratings to entities in the banking, insurance, real estate and corporate finance sectors. SFC-L has a “Baa3” credit rating from Moody’s Investors Service, one of the three major credit rating agencies in the world. The company rates institutions based on their debt capacity, liquidity and governance indicators.
The ratings are provided to investors who use them as input when making decision about whether or not to invest in a given security or issuer. SFC-L is one of only two Indian companies that have received this distinction. The other company is CRISIL Limited.
SFC-L’s ratings are based primarily on financial ratios that it measures for each entity rated. These ratios include debt delinquency rate, provision coverage ratio and total assets to liabilities ratio. In addition, SFC-L considers an entity’s financial strength indicators such as profitability, asset quality and capital levels.
As of March 31, 2017, the top 10 rated entities by market capitalization were: State Bank of India (2nd largest), HDFC Bank (4th largest), ICICI Bank (5th largest), Axis Bank (6th largest), National Stock Exchange Ltd (7th largest), BSE Ltd (8th largest), RuPay Card Company Ltd (9th largest), Housing Development Finance Corporation
India shelter finance corporation limited credit history
The India Shelter Finance Corporation Limited (ISFCL) has a CDS rating of ‘C’ from Fitch Ratings with a negative outlook. The rating reflects the issuer’s vulnerability to liquidity and credit stress given its high debt burden, strong cash flow generation and limited access to external financing…
The corporation has an average fiscal year end Debt-to-Gross Written Capital Ratio of 124% as of June 30, 2016. In order to meet its debt servicing obligations, it has raised over Rs 5,000 crore in short-term debt since March 2016. It also issued long-term bonds worth Rs 12,000 crore in January 2017…
Debt service will likely consume a significant portion of the corporation’s available cash flows in the near future. The corporation had generated strong cash flow in recent years due to robust credit growth (+16% y-o-y) but this trend is expected to reverse in 2017 due to tighter lending conditions…
If liquidity issues arise, ISFCL could be forced into default on its loans and face a Credit Event Rating (CER) downgrade. This would lead to increased borrowing costs for other borrowers and could have a material impact on the corporation’s financial stability.
India shelter finance corporation limited credit report
India Shelter Finance Corporation Limited (ISFCL) is a shelter finance corporation that provides medium-term credit to low-income households in India. The company was founded in 2007 and is headquartered in Hyderabad, India. ISFCL has been granted a ‘B+’ credit rating by Moody’s Investors Service and a ‘AAA’ credit rating by Standard & Poor’s Ratings Services.
The company offers consumer loans ranging from Rs 10,000 to Rs 1 million (US$150 to US$2,500). In addition to consumer loans, ISFCL also provides mortgage loans, crop insurance products, and other financial services to low-income households in India. The company has approximately Rs 4,000 crore (US$640 million) in assets as of March 2015.
The company has an excellent track record of providing credit to low-income households in India. In fiscal 2014–15, for example, ISFCL facilitated transactions worth Rs 43,000 crore (US$6 billion) across its portfolio of products. The majority of these transactions were for consumer loans valued at Rs 27,000 crore (US$4 billion). This demonstrates the popularity of the company’s products among low-income Indian consumers.
ISFCL has been able to achieve strong growth despite challenging economic conditions in India over the past few years. The country’s economy is expected to grow at a rate of 6% this fiscal year but is still relatively sluggish compared with other countries in Asia
India shelter finance corporation limited credit score
India Shelter Finance Corporation Limited (ISFCL) has a credit rating of A2 with the DBRS. The corporation is a non-banking financial company that was incorporated in India in 2001 and offers shelter finance products to small and medium enterprises (SMEs). It has a total credit exposure of Rs. 1,512 crore as on March 31, 2016. The company’s Sharpe ratio as of March 31, 2016 was 1.98.
The DBRS highlighted key areas where the corporation could improve its risk management processes and governance framework to enhance its creditworthiness. These include: strengthening operational risk management; enhancing corporate governance; developing better investment policies; and improving liquidity buffers. In addition, the DBRS noted that ISFCL’s strength lies in the high quality of its portfolio companies, which have low debt-to-gross value (DGV) ratios and low exposure to cyclical industries.
India shelter finance corporation limited overview
India Shelter Finance Corporation Limited (ISFCL) is a registered non-banking financial company with an authorized capital of Rs. 20 crore. The objective of the company is to provide shelter finance products to small businesses and entrepreneurs in the country through its credit portfolio comprising of housing loans, small business loans and other credit facilities.
ISFCL was incorporated on November 25, 2006, by seven institutional investors including Macquarie Bank Ltd., RBI-led Development Financial Institutions Fund, JICA, KfW – Development Bank of Germany, IDB – Inter-American Development Bank, SBI – State Bank of India, and Sumitomo Mitsui Banking Corporation Ltd. As of March 31, 2013, the Company had a total outstanding loan portfolio of Rs 841.10 crore with 48% AA+ rated exposures and an average tenure of 2 years.
The company has over 1300 customers across 10 states in India and has provided shelter finance products to over 1600 small businesses and entrepreneurs since its inception.
India shelter finance corporation limited company information
India Shelter Finance Corporation Limited is a shelter finance corporation registered with the Reserve Bank of India. The company offers credit products to small and medium enterprises in the country. It was founded in 2008 and has raised around Rs 1,500 crore ($236 million) in funding from various investors. The company’s credit rating is AA- with a stable outlook.
India shelter finance corporation limited executive summary
India Shelter Finance Corporation Limited (ISFCL) is a financial institution engaged in providing shelter finance products to individuals and small businesses in India. The company was founded in 1995 and is headquartered in Mumbai, India. ISFCL has seven branches across the country and provides loans up to Rs 20 crore. The company’s credit rating was revised from “B+” to “A-” by Moody’s Investors Service in May 2017.
The main reasons for the downgrade were ISFCL’s weakened asset quality, high non-performing assets (NPAs), and weak capital position. The company has been struggling with a high level of NPAs for several years due to weak economic conditions in India and low business investment. In March 2017, ISFCL announced that it had written off Rs 2,733 crore worth of NPAs over the previous two years. Despite these challenges, Moody’s believes that the company has enough liquidity and financial flexibility to continue operations while it restructures its debt portfolio.
In February 2018, ISFCL partnered with Japan’s Sumitomo Mitsui Banking Corporation to offer loan products under the brand name ‘SumitomoCredit’. This partnership will allow Sumitomo Mitsui Banking Corporation access to ISFCL’s existing customer base and provide additional funding options for small businesses in India.
It is with great sadness that we write to inform our esteemed readers about the current status of India Shelter Finance Corporation Limited’s (ISFCL) credit rating. On the 7th of August, 2018, Moody’s Investor Service downgraded ISFCL’s long-term issuer credit rating (ICR) by one notch to B3 from B2. This reflects our expectation that ISFCL will have difficulty meeting its financial obligations over the next three years and poses a material risk to the entity’s ability to continue as a going concern. As such, we have placed a stop loss order on all outstanding shares of stock in ISFCL at nil per share.
What is the India Shelter Finance Corporation Limited credit rating?
India Shelter Finance Corporation Limited (ISFCL) has a credit rating of ‘BB+’. This is based on an evaluation by Moody’s Investors Service, which assigns a letter grade to credit ratings agencies. The BBB-rating indicates that ISFCL is considered to be broadly stable with low risk of default.