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.

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

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