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Spandana Sphoorty Receives ‘IND BBB+/Negative’ Rating Amidst Operational Challenges

Story Highlights
  • Spandana Sphoorty operates in microfinance, focusing on a diversified loan portfolio.
  • The company received ‘IND BBB+/Negative’ rating due to asset quality and profitability challenges.
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Spandana Sphoorty Receives ‘IND BBB+/Negative’ Rating Amidst Operational Challenges

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Spandana Sphoorty Financial Ltd. ( (IN:SPANDANA) ) has shared an announcement.

Spandana Sphoorty Financial Limited has received a credit rating of ‘IND BBB+/Negative’ from India Ratings & Research for its additional non-convertible debentures, while affirming the same rating for its existing debt instruments. The rating reflects ongoing challenges in asset quality and profitability due to high credit costs and operational expenses, exacerbated by external factors such as political movements and adverse weather conditions. Despite these challenges, the company maintains a healthy capitalisation profile supported by recent equity infusions. However, its cost of borrowing remains high compared to peers, and its ability to diversify funding and improve borrowing rates is crucial for future stability.

More about Spandana Sphoorty Financial Ltd.

Spandana Sphoorty Financial Limited operates in the microfinance sector, providing financial services primarily through non-convertible debentures and bank loans. The company focuses on a geographically diversified loan portfolio across 20 states in India, with a significant presence in states like Madhya Pradesh, Odisha, and Andhra Pradesh.

Average Trading Volume: 24,814

Technical Sentiment Signal: Sell

Current Market Cap: 22.41B INR

See more data about SPANDANA stock on TipRanks’ Stock Analysis page.

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