Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 12.00 ACUITE BB- | Downgraded | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 12.00 - -
 
Rating Rationale
­Acuité has downgraded its long-term rating to ‘ACUITE BB-' (read as ACUITE double B minus) from Acuite BB (Acuite Double B) on the Rs.12.00 Cr. bank facilities of Blaze Trust. The rating is flagged as "Issuer not corporating' and is based on the best avaliable information.
The rating has been downgraded on account of  information risk.

About the company
­Blaze Trust is a Non-Government Organisation-Micro Finance based in Tamil Nadu, India. The trust had started its operations in the year 2007. The trust focuses on Joint Liability Group (JLG), Self- Help Group (SHG), and Micro Credit Group (MCG) lending model for providing collateral free, small ticket-size loans amounting to Rs.10,000 to Rs.40,000 to group of economically active poor women for a period of 12 to 36 months. Blaze is presently working as a business correspondent with Kiara Microcredit Private Limited. The total portfolio of Blaze Trust stood at Rs 8.54 Crore of which managed portfolio stood at Rs 1.27 Crore as on March 31,2021.
 
Non-cooperation by the issuer/borrower
­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer / borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with an unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.
 
Limitation regarding information availability
­The rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower). Acuité endeavored to gather information about the entity / industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.
 
Rating Sensitivity
"­No information provided by the issuer / available for Acuite to comment upon."
 
Material Covenants
None
 
Liquidity Position
­"No information provided by the issuer / available for Acuite to comment upon."
 
Outlook:
­Not Applicable
 
Other Factors affecting Rating
­None
 
Key Financials - Standalone / Originator
Particulars Unit FY21 (Actual) FY20 (Actual)
Total Assets Rs. Cr. 9.42 7.59
Total Income* Rs. Cr. 1.50 1.10
PAT Rs. Cr. 0.15 0.15
Net Worth Rs. Cr. 2.07 1.92
Return on Average Assets (RoAA) (%) 1.78 2.31
Return on Average Net Worth (RoNW) (%) 7.57 9.30
Debt/Equity Times 3.52 2.95
Gross NPA (%) 0.94 0.21
Net NPA (%) - -
*Total income equals to Net Interest Income plus other income.
 
Status of non-cooperation with previous CRA (if applicable):
­None
 
Any other information
­Acuite has received the NDS for the month of April 2023 from the rated entity, confirming the no default on its debt obligations.
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm
Note on complexity levels of the rated instrument
­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to
the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
11 Apr 2022 Proposed Bank Facility Long Term 12.00 ACUITE BB | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 12.00 Simple ACUITE BB- | Downgraded | Issuer not co-operating*

Contacts
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About Acuité Ratings & Research
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