Financial services

CRISIL confirms the ratings of Edelweiss Financial Services

Edelweiss Financial Services said CRISIL Ratings reaffirmed its rating on the company’s retail bonds, long-term debt instruments and banking facilities.

The rating of the long-term principal-protected market-linked debentures has been reaffirmed at “CRISIL PPMLD AA-r/Negative”. While retail bond and non-convertible debenture ratings were reaffirmed at ‘CRISIL AA-/Negative’, commercial paper ratings were reaffirmed at ‘CRISIL A1+’.

CRISIL stated that the ratings continue to reflect the group’s adequate level of capitalization, supported by multiple fundraisings; the diversified business profile with a presence in the lending, asset management, wealth management, brokerage, asset reconstruction and insurance segments; and demonstrated ability to establish a significant presence in multiple lines of business, which should continue to support earnings. The group also maintains adequate liquidity on an ongoing basis.

Maintaining a “Negative” outlook reflects the profitability and asset quality challenges the group has faced largely due to strains on its wholesale lending portfolio. The retail loan portfolio was also affected by the Covid-19 pandemic. Trends in profitability and asset quality, over the medium term, will be the main monitoring parameters.

Edelweiss Financial Services, on a stand-alone basis, is primarily engaged in investment banking and provides support for the development, management and financing of the activities of Edelweiss Group entities.

In the nine months of financial year 2022, the group reported a net profit of Rs 167 crore on total revenue of Rs 5,389 crore, compared to a net loss of Rs 382 crore and total revenue of Rs 6,367 crore in during the corresponding period of the previous financial year.

The certificate fell 2.82% to currently trade at Rs 51.60 on BSE.

Powered by Capital Market – Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor