December 15, 2021

ICRA upgrades long-term rating of Aptus Value Housing

Business Standard
Aptus Value Housing Finance India said that the credit ratings agency ICRA had upgraded the company's long-term rating to '[ICRA] AA- (Stable)' from '[ICRA] A+ (Stable)'.
ICRA said that the rating action factors in Aptus' strengthened capital profile and track record of maintaining healthy profitability and asset quality. ICRA takes note of the fresh equity infusion of Rs 500 crore pursuant to the initial public offering (IPO) in August 2021, that strengthened the capitalisation profile. The current capital profile would comfortably support portfolio growth, which is expected to be about 25-30% per annum, over the medium term.
Aptus' gross stage 3 (GS3) remained at 0.8% as of September 2021 compared to 0.7% in March 2021 (1.1% as of June 2021) and the standard restructured book stood at 1.5%. ICRA takes note of the elevation in the softer bucket overdues post the Covid-19 pandemic, while slippages to harder buckets were contained.
The rating continues to factor in the prudent internal controls and underwriting policies that support the asset quality performance. Aptus had increased its overall provision coverage ratio (PCR) to 0.7% of the gross carrying value (GCA) as of September 2021 from 0.4% as of March 2021.