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SKS Microfinance secures ‘A’, ‘A1’ ratings for bank facilities worth Rs 2000 crore

17 Sep 2013 Evaluate

SKS Microfinance has secured ‘A’ rating for its long-term and ‘A1’ rating for its short-term bank facilities for an aggregate sum of Rs. 2000 crore. The company has received this rating from leading rating agency. These ratings are likely to enhance credit availability and reduce the cost of borrowing as they will free up capital allocation for banks in the case of the Company's borrowings.

According to the rating agency, instruments with ‘A’ rating are considered to have adequate degree of safety regarding timely servicing of financial obligations and carry low credit risk. Instruments with ‘A1’ rating are considered to have very strong degree of safety regarding timely payment of financial obligations and carry lowest credit risk.

SKS Microfinance (SKS) is a non-banking finance company (NBFC), registered and regulated by the Reserve Bank of India, whose mission is to provide financial services to low-income households. SKS operates across 16 states of India.

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