IFMR Capital, has been assigned an enhanced long-term credit rating from A to A+ by ICRA and enhanced short-term credit rating from A1 to A1+ by ICRA and CARE. The ratings have been upgraded in view of the improvement in capital adequacy levels, increase in portfolio diversification towards new asset classes along with growing business volumes in the last three years.
The improved long-term credit enhancement will enable IFMR Capital manage their credit risk efficiently,while the short-term credit enhancement will ensure that the company is equipped to manage their liquidity risks as well.
IFMR Capital’s expertise in the sectors they work in, sound risk-management systems and a strong management team validate the credit ratings.
The Company commenced its business with investments in microfinance and expanded into other asset classes such as Affordable Housing Finance, Small Business Loans Finance and Commercial Vehicles Finance.
Their exposure in these other asset classes has steadily increased from 4% in March 2012 to 26% in March 2014. Commenting on the enhanced credit ratings, Dr. Kshama Fernandes, CEO, IFMR Capital said, “It is a proud moment for us to be the highest rated NBFCof our scale. The improved ratings re-affirm the strength of our business fundamentals and advanced risk management. This is a result of our continuous efforts towards exploring asset classes, seeking high quality originators in these asset classes and improving the geographical spread of our portfolio.”
A strong and stable management team and an experienced board at IFMR capital has ensured that the Company has a continued focus on making capital available across asset classes. The risk policy and risk framework is approved by a Risk Committee ensuring reduced risk for investors. The team invests significant amount of time in understanding each asset class, identifying various risks and developing underwriting guidelines specific to each asset class.