Edelweiss Financial Ensures a High Degree of Safety and Low Credit Risk
Updated On Dec 08, 2020
Edelweiss Financial Services (the parent company of Edelweiss General Insurance Company) ensures a high degree of safety and very low credit risk. This is revealed due to the fact that ICRA has reaffirmed the credit rating of A1+ to Edelweiss Financial Services. In general, the rating of A1+ is an indication of a very strong degree of safety when it comes to the payment of financial obligations on time.
This credit rating has been assigned to the commercial paper programme of Rs. 6,350 crore and short-term non-convertible departure programme of Rs. 100 crore of Edelweiss Financial Services.
Commercial paper, or CP, is an unsecured money market instrument or we can say a short-term debt instrument, which is issued by companies to raise funds usually for a period of up to one year. On the other hand, non-convertible debentures, or NCD, are fixed-income instruments that are generally issued by high-rated companies. The NCD allows a higher interest rate compared to convertible debentures.