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Thursday, July 26, 2001

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Citicorp Maruti Finance gets P1 plus

A P1 plus rating has been assigned to the Rs. 225 crore short term debt programme of Citicorp Maruti Finance (CMFL). The AAA (triple A) ratings assigned to the company's non-convertible debenture programmes have also been reaffirmed.The ratings factor in the strong parentage of the company, the strategic importance of CMFL to the promoter companies and the support extended to it by its promoter companies in terms of management, funding, infrastructure and information systems.

The ratings also factor in CMFL's strong market position in financing of vehicles manufactured by Maruti Udyog and low delinquencies in the asset portfolio. These factors are partly offset by the company's single business concentration in Maruti vehicles.

CMFL, a joint venture between Citicorp Finance India (74 per cent) and Maruti Udyog (26 per cent), is engaged primarily in the business of hire-purchase financing of Maruti vehicles. CFIL is a wholly owned subsidiary of Citibank Overseas Investment Corporation (COIC), Delaware (U.S.). COIC, in turn, is a 100 per cent subsidiary of Citibank NA which has a long term rating of AA minus from Standard & Poor's.

Maruti Udyog is a 50:50 joint venture between the Government of India and Suzuki Motor Company, Japan, and is India's largest car manufacturer. For the year 2000-01, CMFL has reported a profit after tax of Rs. 7.96 crores on a total income of Rs. 97.09 crores.

Corporate Bureau

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