Piramal Enterprises' subsidiary for commercial paper programme worth Rs 10,500 crore gets highest rating from Crisil

"The company has put in place adequate credit appraisal, strong risk management and processes, which has supported the reported asset quality metrics, "CRISIL in its report said.

"The management too has taken steps in order to reduce concentration risk in the portfolio with focus on growing the individual housing loans portfolio. But, what has really supported the asset quality metrics in the past, has been the ability of the entity to get timely repayments/exits via refinancing," the report added.

In fiscal 2019, in addition to a regular Rs 3,601 crore of collections, the group has also received prepayments to the tune of Rs 13,483 crore. For some of the loan accounts, the group has received prepayments covering the scheduled re-payments over the next 12-24 months.

On a standalone basis, the resource profile for PCHFL is well diversified across instruments with bank and financial institutions loans at 61 percent, non-convertible debentures (NCDs) constituting around 24 percent and commercial papers at 16 percent as on March 31, 2019, the report stated.

"The management is also taking proactive steps to improve the resource profile mix through increasing long-term funding sources and the company has managed a sanction of Rs 1,050 crore ($150 million) of ECBs in the first quarter of fiscal 2020 and also plans to raise additional long term funds in the current fiscal, which would support the diversification into longer term funding sources,” Crisil said.

Crisil has recently also assigned the highest rating A1+ to PEL for the short-term NCDs amounting to Rs 1,500 crore and the commercial paper programme amounting to Rs. 12,000 crore by (PEL).