 "SKS credit rating upgraded")
SKS Microfinance Limited, the only listed microfinance company in the country stated that its credit rating for bank borrowings has been upgraded by a leading rating agency to A1+ from A1 for short-term facilities and to A+ from A for long-term facilities for a sum of Rs 2,000 crore.
The company informed BSE on Tuesday that its borrowings stood at Rs 1,456.19 crore as of May 31, 2014. It expects the upgrade to have a positive impact in terms of reduction in the cost of borrowing but is unable to quantify the same at this point of time.
Short-term debt instruments with A1+ rating are considered to have a very strong degree of safety regarding timely payment of financial obligations. Such instruments carry the lowest credit risk. Similarly, long-term debt instruments with A+ rating are considered to have an adequate degree of safety regarding timely servicing of borrowings. Such instruments carry a low credit risk.