Brickwork Ratings (BWR) revises its rating on the long-term bank facilities and bonds of TFCI to 'BWR A+' from 'BWR AA-' while maintaining the rating outlook on Negative. The rating downgrade factors in the severe impact of COVID-19 on the tourism, hospitality and urban infrastructure sectors and the resultant deterioration in the loan collections of TFCI. Approximately 75% of the assets under management (AUM) of the company is exposed to the tourism and allied sectors. The negative outlook reflects the considerable risk of a delay in collections and the deterioration in the company's loan portfolio, rise in credit costs and muted growth in the loan book in the near term.
However, the rating continues to draw comfort from the experienced management team of the company, healthy capitalisation and comfortable liquidity position. The rating, however, remains constrained by its wholesale nature of operations with high concentration in the tourism sector and average asset quality.
Shares of TOURISM FINANCE CORPORATION OF INDIA LTD. was last trading in BSE at Rs.30.2 as compared to the previous close of Rs. 30. The total number of shares traded during the day was 2400 in over 71 trades.
The stock hit an intraday high of Rs. 30.45 and intraday low of 29.95. The net turnover during the day was Rs. 72350.