Rating agency ICRA, A Moody’s Investor Service Company, has upgraded the long-term rating of Indiabulls Housing Finance Limited (IBHFL) to “[ICRA] AAA”, from its earlier assigned rating of “[ICRA] AA+”. Further, in its rating communication ICRA mentions: “The Outlook on the long-term rating is Stable. Instruments with “[ICRA] AAA” rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.”
IBHFL is only the second independent non-bank company in India to enjoy this rating. The only other independent non-bank company to enjoy a AAA rating from ICRA was upgraded to this rating 20 years ago in 1997.
IBHFL will now gain as cost of borrowings will come down due to this rating upgrade and the company can align itself with those of established AAA rated corporates.