Aye Finance Ltd2:30 pm IST
Ind-Ra upgrades Aye Finance to IND A+/Stable; CP to IND A1+
Rating actions and instrument details
- Issuer rating upgraded to IND A+/Stable from IND A/Stable.
- CP rating raised to IND A1+ from IND A1.
- Bank loan facilities upgraded to IND A+/Stable.
- Non-convertible debentures upgraded to IND A+/Stable; size reduced to INR 12,963.09m.
- Outlook remains Stable; upgrade driven by capitalisation and funding diversification.
Rationale, liquidity and financials
- IPO-driven capitalisation improved tangible net worth to INR 24.75b.
- AUM stands at INR 70.44b; secured loans ~60% of portfolio.
- Adequate liquidity with unencumbered cash around INR 7.6b; diversified funding.
- Covenant breaches exist in 9.2% of total borrowings; waivers have been obtained.
- NPA 4.77%; leverage 2.03x; Tier 1 42.24%.
Outlook and sensitivities
- Outlook: Stable.
- Material changes since last: issuer and CP upgrades; NCD size reduced.
- Upgrade possible with continued growth, diversification, and stable long-term funding.
- Downgrade risk if funding dries up, leverage exceeds 4x, or asset quality deteriorates.