Leading rating agencies Crisil and Care have reaffirmed highest credit ratings to the debt instruments of the troubled LIC Housing Finance.
While Care reaffirmed the existing Care AAA rating to the non-convertible debentures of LIC Housing Finance aggregating to Rs 18,322 crore, Crisil has reaffirmed its highest ratings on its debt instruments, bank loans, commercial papers and fixed deposit programme at 'AAA/FAAA/Stable/P1+, a release said here today.
Care's AAA is the highest long term credit rating, signifying sound financial condition of a firm. Crisil had, however, added that it will continue to monitor the developments in LICHFL.
While the Care rating came in yesterday, that of Crisil was given on November 29, the media release added. Care also reaffirmed the triple-A rating for the Rs 750 crore tier II bonds and Rs 1,600 crore upper tier II bonds of LIC HFL.
Investors trust in LIC Housing Finance, which is promoted by the nation's largest financial entity LIC of India, was shaken and its share was beaten following the arrest of its then Chief Executive Ramachandran Nair by the Central Bureau of Investigation in a cash-for-loan scandal in the middle of last month.
The premier investigative body had also arrested four senior level officials of Central Bank of India, Punjab National Bank and Bank of India along with the top management of the city-based private intermediary Money Matters for bribing these bank officials to get corporate loans.