Mahindra & Mahindra ‘AAA’ credit rating upgrade
Mahindra & Mahindra (M&M) sees its Credit Rating upgraded to AAA, the highest level by India Ratings & Research, global ratings agency, Fitch’s domestic arm. The firm has assigned a Long Term Issuer rating of ‘Ind AAA’ with a stable outlook to M&M. This is the result of Mahindra’s resilience to economic cycles in the past 18 years. The rating also takes into account M&M’s strong market position, meaningful diversification activities, effective product development strategies, and conservative financial policies.
Commenting on the development, Mr. Anand Mahindra, Chairman, Mahindra Group, said, “This improvement in our credit rating is a reflection of Mahindra’s financial prudence over the years. It also recognises our ability to manage an increasingly volatile and complex business environment.”
According to Mr V S Parthasarathy, Chief Financial Officer, Group CIO, EVP – Group M&A & Member of the Group Executive Board, Mahindra & Mahindra Ltd., “The Ind AAA rating proves that M&M has remained stable despite adversities by focusing on the highest standards of governance and prudent business and financial metrics to ensure zero trauma. In the context of fears over the credit quality of banks’ corporate loan book, the rating assumes significance as an independent reassurance of the Mahindra Group’s conservative and robust financial policies. Even as we celebrate this occasion, we are aware of our responsibility of protecting this rating in times to come.”