GE Countrywide rating reaffirmed

The P1 plus rating assigned to the Rs. 325 crore short term debt programme of GE Countrywide Consumer Financial Services (GECCFS) has been reaffirmed. The rating reflects the strong parentage of the company. GECCFS derives strong systems, financial, management and operational support from GECSI. GECSI enables GECCFS to access funds from banks at lower costs and provides funding support to GECCFS through direct funding and purchase of securitised assets, which helps improve the financial flexibility of GECCFS significantly. These factors are partly offset by the high gearing and pressure on profitability.

GECCFS is operationally controlled by GE Capital Services India (GECSI), which has a 75 per cent shareholding in the company. The balance 25 per cent is held by Housing Development Finance Corporation. GECSI, which is rated AAA by Crisil, is a wholly owned subsidiary of GE Capital Corporation of the U.S. (GECC), through its Mauritian subsidiary, General Electric Capital Services, Mauritius. GECC is rated AAA by both S&P and Moody's.

For the year ended March 31, 2000, GECCFS reported a profit after tax of Rs. 10.12 crores on a total income of Rs. 135.1 crores. - Corporate Bureau

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Section  : Business
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