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Spandana Sphoorty Faces Credit Rating Downgrade Amidst Operational Challenges

Story Highlights
  • Spandana Sphoorty Financial Ltd. operates in the microfinance sector, focusing on diverse financial services.
  • The company faces a credit rating downgrade due to asset quality stress and operational challenges.
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Spandana Sphoorty Faces Credit Rating Downgrade Amidst Operational Challenges

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Spandana Sphoorty Financial Ltd. ( (IN:SPANDANA) ) has shared an update.

Spandana Sphoorty Financial Ltd. has experienced a downgrade in its credit rating from IND A-/Negative to IND BBB+/Negative by India Ratings & Research, reflecting ongoing stress in its asset quality and profitability. The downgrade is attributed to increased borrower indebtedness, operational challenges, and external factors such as political movements and adverse weather conditions. Despite these challenges, the company maintains a geographically diversified loan portfolio and a healthy capitalisation profile. However, its cost of borrowing remains high compared to peers, and the company faces significant sectoral risks associated with the microfinance industry.

More about Spandana Sphoorty Financial Ltd.

Spandana Sphoorty Financial Ltd. operates in the microfinance sector, providing financial services primarily through non-convertible debentures and bank loans. The company focuses on serving the microfinance market, which involves lending to individuals with modest borrower profiles across geographically diverse locations.

Average Trading Volume: 31,792

Technical Sentiment Signal: Sell

Current Market Cap: 22.12B INR

See more insights into SPANDANA stock on TipRanks’ Stock Analysis page.

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