India Ratings upgrades Aditya Birla Housing Finance's ratings

India Ratings and Research has upgraded Aditya Birla Housing Finance's long-term issuer rating to AAA from AA+, with a stable outlook The agency affirmed its short-term issuer rating at A1+. According to Ind-Ra, the upgrades reflect the strong credit profile of Grasim Industries, which is the ultimate parent of Aditya Birla Housing Finance. Aditya Birla Housing Finance, which was earlier a subsidiary of Aditya Birla Nuvo, has become the step-down subsidiary of Grasim Industries, through Aditya Birla Capital, post the merger of Aditya Birla Nuvo with Grasim Industries. The rating agency feels the financial services business has increasingly become important to Grasim Industries and the larger Aditya Birla Group franchise from a long-term perspective. "Ind-Ra understands that financial services remains a strong focus area for the Aditya Birla Group and has a close oversight from the top management, increasing the likelihood of active support, in the event of liquidity tightness or through timely availability of growth capital. While ABHFL’s current franchise remains modest, it complements the group’s philosophy of providing complete product suits in the financial services segment," it said in a release.