The rating of NBFC Fedbank Financial Services has been upgraded. The NBFC gave this information after the market closed on Friday. The company said that Crisil Ratings has upgraded the credit rating of its non-convertible debenture. At the same time, the rating of commercial paper has been maintained. According to the data at the end of June quarter, Federal Bank Limited has a 61 percent stake in Fedbank Financial Services. The stock of NBFC closed with a slight decline in Friday's trading.

In a communication sent to the stock exchange, the company said that Crisil Ratings has upgraded the rating of its Rs 1250 crore non-convertible debenture to Crisil Double A Plus and Stable Outlook. Before the upgrade, the rating was Double A and Positive Outlook. At the same time, the current rating of Rs 1000 crore commercial paper has been retained at Crisil A One Plus. The rating agency informed that the step taken regarding the rating of the NBFC is in the same direction as the one taken regarding the rating of the parent Federal Bank. Crisil Rating has also upgraded the rating of Federal Bank. The rating agency said that Fedfina has very strong support from the parent, due to which the rating has also been upgraded. Crisil said that being a subsidiary, the NBFC has the support of a big brand and also has financial and operational support from the parent. Apart from this, the capital position of the company remains good. However, on the other hand, the report has said to keep an eye on its growth and expansion plans with some concerns. The company operates exclusively in the retail loan segment and more than a third of the segment is gold loans and about 22 percent is medium-sized loan against property.