Rating agency Brickwork downgrades PTC Financial Services to AA- from AA

The negative growth in the loan book of PFS, a unit of PTC India, is on account of funding challenges faced by NBFCs

PTC Financial Services (PFS) is facing pressure on its profile after consistent negative growth in the assets under management (AUM) for three quarters, said rating agency Brickwork, while downgrading its debentures from “AA” to “AA-”.
 

The negative growth in the loan book of PFS, a unit of PTC India, is on account of funding challenges faced by non-banking financial companies (NBFCs). This has resulted in curtailed disbursements, stressed asset quality because of high exposure to the power sector and lower profitability, given the higher credit costs.
 

The rating for PFS, an NBFC, continues to derive comfort from the strong parentage