Acuité Ratings & Research Limited has assigned ‘ACUITE A-’ on Dvara KGFS with the outlook on the long-term rating set at stable.
Acuité Ratings & Research Limited, a SEBI registered and RBI accredited credit rating agency, assigns the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the facilities of Dvara Kshetriya Gramin Financial Services Private Limited (Dvara KGFS) with the outlook on the long-term rating set at stable.
The rating factors in all the continuous support of founder-promoter Dvara Trust (erstwhile IFMR Trust) and also takes into consideration Dvara KGFS’s established presence in its areas of operations and demonstrated growth of its AUM which stood at INR 1,107.79 crore as on March 31, 2021. The company has maintained a conservative leverage of 3 times as on March 31, 2021.
Joby C O, Chief Executive Officer, Dvara KGFS said “‘Acuite A-‘ rating by Acuité Ratings & Research Limited reinforces the trust reposed on Dvara KGFS by various lenders both domestic and foreign. It is truly a proud moment for Dvara KGFS to upgrade the ratings to A- and hopes it help us to broad base our fund raising to more lenders with more competitive rates.“
Highlighting the importance of the upgrade, Vijayakumar G, Chief Financial Officer, Dvara KGFS said “We see Liquidity flow for the NBFC’s should be continuous and this rating upgrade to A- during these difficult times would give the company more access into capital markets resulting in reduction of cost of funds during FY22.”