SKS credit rating upgraded

Company's borrowings stands at Rs 1,456.19 crore as of May 31

SKS Microfinance Limited, the only listed microfinance company in the country stated that its credit rating for bank borrowings has been upgraded by a leading rating agency to A1+ from A1 for short-term facilities and to A+ from A for long-term facilities for a sum of Rs 2,000 crore.

The company informed BSE on Tuesday that its borrowings stood at Rs 1,456.19 crore as of May 31, 2014. It expects the upgrade to have a positive impact in terms of reduction in the cost of borrowing but is unable to quantify the same at this point of time.

Short-term debt instruments with A1+ rating are considered to have a very strong degree of safety regarding timely payment of financial obligations. Such instruments carry the lowest credit risk. Similarly, long-term debt instruments with A+ rating are considered to have an adequate degree of safety regarding timely servicing of borrowings. Such instruments carry a low credit risk.