HDFC, the country's largest housing finance company, is planning to raise up to Rs 35,000 crore through non-convertible debentures to fund the expanding business.
Rating agency CRISIL has assigned "AAA" for the proposed debenture offering. Ratings continue factor in HDFC's leading market position and sound track record, strong asset quality, diversified and stable resource profile, and healthy capitalisation and profitability.
The rating strengths are partially offset by HDFC's exposure to intense competition in the housing finance segment, CRISIL said in a statement.
While competition has increased over time, with the entry of new players and greater focus by banks on this segment, HDFC has maintained its market share.
The resource profile continues to be well-diversified, lending flexibility to HDFC's borrowings. HDFC's borrowing mix primarily comprises of market borrowings (51 per cent) and fixed deposits (31 per cent). The share of bank borrowings in overall borrowing stood at 18 per cent.
