Credit Fair, a consumer lending fin-tech start-up, has announced that Acuite Ratings & Research Limited has assigned ‘Stable’ outlook to the company. In addition, Acuite Ratings & Research Limited has assigned a long-term rating of ‘ACUITE BBB-’ (triple B minus) to Credit Fair’s Rs. 35 crore bank facilities and Rs 15 crore proposed non-convertible debentures (NCDs). The ratings make Credit Fair one of the few seed-funded start-ups with investment grade rating.
According to Acuite Ratings & Research Limited, the rating factors in the experienced management team, healthy capitalisation levels and significant growth in AUM during FY22. Credit Fair witnessed an improvement in its capitalisation levels aided by equity infusion of ~Rs 15.87 crore led by ‘LC Nueva Alternative Investment Fund’ and conversion of debt to equity capital of Rs. 6.50 crore. The total infusion and conversion amount to Rs 22 crores of capital. The capital adequacy ratio (CAR) levels stood at 40.78 per cent as of June 2022.
The credit profile of Credit Fair derives strength from its demonstrated ability to raise capital in the form of equity. Credit Fair has demonstrated sound asset quality, as reflected in the low Gross Non-Performing Assets (GNPA) of 0.50 per cent as on March 31, 2022.
Commenting on the ratings, Aditya Damani, Founder and CEO, Credit Fair, said, “Acuite Ratings & Research Limited assigning ‘Stable’ outlook to our company and a long-term rating of ‘ACUITE BBB-’ (triple B minus) to our bank facilities and proposed non-convertible debentures (NCDs) is an extremely encouraging development for us. Being a seed-funded start-up, the ratings will strengthen our fund-raising efforts and motivate us to continue with our mission to offer access to credit to millions of people in our country. Our goal is to position Credit Fair as the one-stop destination for consumers and businesses to avail suitable credit solutions.”
