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Rating agency ICRA has cut rating for two MFIs and securitised loan pool on Covid-19 pressures. It downgraded the rating for ASA International India Microfinance’s long term bank lines from "BBB" to "BBB-". Similarly, it cut ratings on debentures of Jagaran Microfin’s (JMPL) from "BBB-" to "BB+". The rating action factors in the significant increase in delinquencies and the pressure on profitability and growth in light of the Covid-19 pandemic.
It also cut rating for securitised micro-loan pool from "BB" to "BB-" .
It takes into account the considerably lower-than-expected collections from the sub-pool of Sambandh Finserve Private
