Mahindra Finance Retains Top Credit Ratings From CRISIL, India Ratings and CARE

Mahindra & Mahindra Financial Services has retained its top credit ratings across a wide range of borrowing programmes, with CRISIL Ratings, India Ratings & Research and CARE Ratings reaffirming their assessments of the company. 

The ratings were received on October 7 and disclosed by Mahindra Finance to the stock exchanges on October 8. 

Across the three agencies, the company continues to carry AAA ratings with a stable outlook on several of its long-term borrowing programmes, while its commercial paper remains rated A1+. 

CRISIL Keeps AAA Rating on Long-Term Debt 

CRISIL reaffirmed its AAA/Stable rating on Mahindra Finance’s non-convertible debentures worth ₹30,980 crore. 

The same AAA/Stable rating was retained for ₹6,000.50 crore of subordinated debt. 

For the company’s ₹20,000 crore commercial paper programme, CRISIL maintained its A1+ rating. 

The latest action leaves these ratings unchanged rather than moving them higher or lower. 

Mahindra Finance – India Ratings Reaffirms Ratings On Financing Instruments 

Mahindra Finance continues to have similar credit ratings on various financing products by India Ratings & Research. 

The bank’s loan worth ₹80,000 crore is still rated at IND AAA/Stable/IND A1+, while its fixed deposits are rated at IND AAA/Stable, worth ₹20,000 crore. 

The rating of the IND AAA/Stable was reiterated for the bank’s non-convertible debentures worth ₹49,000 crore and retail NCDs of ₹8,000 crore. 

Its private subordinated debt and retail subordinated debt are still AAA-rated with stable outlook, worth ₹10,450 crore and ₹3,000 crore, respectively. 

The principal protected market linked debentures of the bank valued at ₹1,500 crore maintain the IND PP-MLD AAA/Stable rating. 

Its commercial paper program worth ₹20,000 crore has been reaffirmed at IND A1+. 

CARE Ratings Reaffirms AAA Ratings 

CARE Ratings reaffirmed the CARE AAA; Stable/CARE A1+ ratings assigned to Mahindra Finance’s ₹50,000 crore bank facilities long-term and short-term facility. 

CARE Ratings has also reaffirmed CARE AAA; Stable rating on secured privately placed NCDs of ₹11,686.50 crore and ₹1,000 crore on unsecured privately placed NCDs. 

₹2,385 crore of subordinated debt was rated equally well. 

CARE has also reaffirmed the rating on the company’s long term debt program of ₹4,059.03 crore of publicly issued non-convertible debentures and subordinated debt. 

What the Reaffirmation Means 

The October review does not represent a fresh upgrade for Mahindra Finance. Instead, all three agencies have chosen to maintain their existing high-grade assessments across the covered instruments. 

AAA represents the highest rating category for long-term instruments under these agencies’ respective scales, while A1+ sits at the highest end of the short-term rating scale. 

Mahindra Finance’s own earlier disclosures show that it has carried AAA/Stable ratings on long-term instruments and A1+ ratings on short-term borrowings, including commercial paper. 

The latest reaffirmations therefore continue that rating profile across a sizeable pool of the company’s borrowings. 

For Mahindra Finance, the October 7 rating actions leave the picture broadly unchanged: its major long-term programmes covered by the three agencies remain in the AAA category with stable outlooks, while short-term commercial paper continues to carry A1+ ratings.