The rating of the long term principal protected market linked debentures has been reaffirmed at ‘CRISIL PPMLD AA- r /Negative'. While the ratings of the retail bonds and non convertible debentures has been reaffirmed at ‘CRISIL AA-/Negative', the ratings of the commercial paperhas been reaffirmed at ‘CRISIL A1+'.

CRISIL said that the ratings continue to reflect the adequate capitalisation level of the group, supported by multiple rounds of capital raising; the diversified business profile with presence across lending, asset management, wealth management, broking, asset reconstruction and insurance segments; and demonstrated ability to build significant presence in multiple lines of business, which should continue to support earnings. The group also maintains adequate liquidity on an ongoing basis.

The continuation of the ‘Negative' outlook reflects the challenges in profitability and asset quality that the group has been facing largely on account of stress on its wholesale lending book. The retail lending book was also impacted amid the Covid-19 pandemic. Trends in profitability and asset quality, over the medium term, will be key monitorables.

Edelweiss Financial Services, on a standalone basis, is primarily engaged in investment banking services and provides development, managerial and financial support to the businesses of the Edelweiss group entities.

During the nine months of fiscal 2022, the group reported net profit of Rs 167 crore on total income of Rs 5,389 crore, compared to net loss of Rs 382 crore and total income of Rs 6,367 crore during corresponding period in previous fiscal.

The scrip fell 2.82% to currently trade at Rs 51.60 on the BSE.