Can Fin Homes (CFHL) Ltd has been assigned an ‘AA+' rating by CARE. The rating is assigned on the basis of its long term instruments that are considered to offer high safety for timely servicing of debt commitments. Such instruments also carry very low credit risk.
Instruments with tenure of more than one year were taken into consideration while assigning the rating. The outstanding term loans of Rs 9,472.2 million and due term loan of Rs 2,677.9 million have been assigned this rating by CARE.
The rating depends in CFHL's strong parentage, Canara Bank's support in the form of lines of credit and deputation of key personnel, housing loan portfolio consisting mainly of individual housing loans, low NPA levels, and comfortable spreads due to high profitability and low operating costs. It also depends on the small size of CFHL against the leading Housing Finance Companies (HFCs).
CFHL is a Housing Finance Company set up under the sponsorship of Canara Bank in 1987. Canara Bank started this company in association with HDFC Bank and UTI. The operations of the company are headed by Vincent J D` Silva who is the Managing Director of the firm.
Can Fin Homes is the first and the biggest bank sponsored Housing Finance Company in the country and also among the top players in the country's housing finance sector. It is one among the four HFCs selected by NHB in its first phase of securitization programme and therefore its funding sources mainly consist of refinance from NHB and term loans from banks.
CFHL has an all India presence with a network of 46 branches.