TFCI loses on receiving negative credit ratings
Acuite Rating agency has reaffirmed the long-term rating of 'ACUITE AA-' to the Rs. 300 crores secured redeemable non-convertible debenture issued by the Tourism Finance Corporation of India Limited (TFCI). The outlook has been revised from 'Stable' to 'Negative'.
According to the report released by Acuite, the rating is driven by an increase in stressed assets, which are gross non-performing loans and investments and 50 per cent of investments in security receipts, from Rs. l00.23 crores as on March 31, 2019 to Rs. 168.29 crores as on September 30, 2019, mainly due to slippage in one large account. The rating agency believes that the rating could be downgraded in case of further increase in stressed assets level due to fresh slippages and challenges in recoveries from existing non-performing assets. However, based on discussions with management of TFCI, the rating agency understands that adequate provisions have been made for these stressed exposures.
TFCI is a New Delhi-based company, incorporated in 1989 as a Public Financial Institution (PFI) to cater to the financial needs of the tourism industry.
On Monday the stock closed at Rs. 75.45, down by 2.90 per cent or Rs. 2.25. It's 52-week high is Rs. 154.40 and 52-week low is Rs. 55.55.