CARE upgrades Srei Equipment Finance long-term facilities

CARE Ratings has upgraded its rating on Srei Equipment Finance Ltd's (SEFL) long-term facilities to 'CARE AA' with stable outlook from 'CARE AA-' with positive outlook.

The upgrade factors in the overall improvement in the financial risk profile of SEFL, marked by "significant growth in disbursements in the fiscal 2017-18, improvement in profitability, collection efficiency and asset quality indicators," the company said in a release.

The rating upgrade also takes into consideration "continuous reduction" in net non-performing assets, it said.

"This upgrade is a result of strong business fundamentals and will help us in diversification of resource base and reduce cost of funds," said Devendra Kumar Vyas, CEO of Srei Equipment Finance.