Kotak Mahindra Primus Fixed Deposits Rated Faa

Crisil has assigned an FAA rating to the proposed fixed deposit programme of Kotak Mahindra Primus (KMP) indicating high safety regarding timely payment of interest and principal. A rating of P1+ has been assigned to the Rs 20-crore commercial programme indicating strong safety.

KMP is a new joint venture company formed between Kotak Mahindra Finance (KMFL), rated FAA by Crisil, and Ford Credit International (FCI), US, set up to undertake retail financing of all non-Ford passenger cars and financing of dealers in India. FCI is a wholly-owned subsidiary of Ford Credit Capital Company (FCC) of the US.

FCC is the worlds largest captive automotive finance company with receivables worldwide in excess of $120 billion.

KMP started operations from November 1, 1996, with the transfer of infrastructure, marketing and operational set-up from KMFLs existing car financing business.

KMP is strongly placed on the resource front; the high start-up net worth of Rs 180 crore provides the company significant competitive advantage to leverage in future.

The company also enjoys a good measure of financial flexibility on account of the strength, market position and reputation of its promoters.