Sundaram Finance

ICRA has retained the MAAA rating assigned to the fixed deposit programme of Sundaram Finance. The rating factors in the favourable shift in the company's asset mix, the improved collection performance of its contracts, the low financial risk due to moderate gearing and comfortable liquidity.

The rating also factors in the continued pressure on Sundaram Finance's profitability due to the squeeze on the lending spreads and the higher NPA provisioning. Sundaram Finance's brand image, group strength, conservative management practices and accounting policies are sources of comfort.