 "ICRA lowers rating for Janalakshmi debentures")
Rating agency ICRA has lowered its rating for Janalakshmi Financial Services’ (JFS’) long- term loans and debentures, from ‘A+’ to ‘A’, saying there’s been a sharp deterioration in asset quality.
Hits by the November 2016 demonetisation, the microfinance company saw loan overdues (90-plus days) jump from 1.1 per cent in January to 26.1 per cent in May.
ICRA said its outlook had been revised from negative to stable for debentures and long-term facilities. This factors in the continued deterioration in asset quality after a post-demonetisation weakness in collection efficiency, which is likely to put pressure on the company’s capitalisation and profitability
