India Ratings has upgraded Can Fin Homes’ long-term issuer rating to ‘IND AAA’/Stable from ‘IND AA+’. The upgrade reflects Ind-Ra’s expectation that CFHL will receive timely liquidity and equity support from Canara Bank, its parent company. This also applies to its NCDs and Subordinated Debt Programme. The rating reflects the company’s established presence and controlled asset quality.
Rating Upgrade Details
India Ratings and Research (Ind-Ra) has upgraded Can Fin Homes Limited’s (CFHL) long-term issuer rating to ‘IND AAA’ from ‘IND AA+’. The Outlook is Stable.
Rationale for the Upgrade
The upgrade mirrors Ind-Ra’s revised approach considering the expected financial and strategic support from Canara Bank, which holds a 29.99% stake in CFHL. This expectation has been strengthened by the lifting of restrictions on overlapping business lines between banks and their subsidiaries, which reduces the divestment risk.
Instrument-Wise Rating Actions
India Ratings has upgraded ratings of different instruments. Details are as follows:
- Long-Term Issuer Rating: upgraded to IND AAA/Stable
- Non-convertible debentures (NCDs): upgraded to IND AAA/Stable for issue size of INR15.38 billion (reduced from INR31.98 billion)
- Subordinated debt: upgraded to IND AAA/Stable for issue size of INR2.00 billion
Key Rating Drivers
The ratings continue to factor in the company’s established presence in the domestic housing finance market, controlled asset quality numbers and stable profitability metrics. The ratings reflect CFHL’s high gearing levels, which reduced steadily over the past few years but remained higher than other similar-rated peers.
Asset Quality
CFHL has displayed strong control over its asset quality with gross stage 3 assets at 0.94% as on September 30, 2025.
Liquidity Position
CFHL’s liquidity is adequate with unutilized bank facilities and working capital limits standing at INR99.68 billion as of September 30, 2025.
Source: BSE