Spandana Sphoorty Financial Limited has informed the Exchange about Credit Rating
SPANDANA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Crisil Ratings has downgraded Spandana Sphoorty's long-term bank loan facilities rating to 'Crisil BBB+/Stable' from 'Crisil A-/Stable'. The rated bank loan facilities have been reduced from Rs 3,500 crore to Rs 1,700 crore, with Crisil also withdrawing its rating on a Rs 1,800 crore proposed facility. The downgrade is driven by a sharp rise in bad loans — gross NPAs jumped to 5.6% (24.9% including write-offs) from 1.5% a year ago — leading to credit costs of 17% for FY25 and a full-year loss of Rs 1,035 crore, reversing a Rs 501 crore profit in FY24. The company paused new lending in Feb–April 2025, causing AUM to shrink 43% to Rs 6,819 crore, though capital remains strong with 36% CAR and a planned Rs 750 crore equity raise to support the balance sheet.
Negative for shareholders — the rating downgrade, surging NPAs, and a Rs 1,035 crore annual loss signal serious asset quality stress in the microfinance business and may weigh on the stock. However, comfortable capital, adequate liquidity, and the planned equity infusion limit solvency risk in the near term.