Rating Action
S&P Upgrades Sammaan Capital’s Long-Term International Credit Rating to BB- with Stable Outlook
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sammaancap
BSE
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S&P Global Ratings has upgraded Sammaan Capital Limited’s long-term international credit rating to BB- with Stable Outlook. The upgrade reflects strengthening credit fundamentals following the strategic investment by International Holding Company PJSC (IHC), with expectations of improved business profile, funding access, capitalization, and profitability.
PRICE-SENSITIVE TRIGGER
Event: International Credit Rating Upgrade
Type: Rating Action
Impact: Positive
Immediate Effect: The rating upgrade enhances Sammaan Capital’s credit standing in international markets, improves funding access, supports lower borrowing costs, and strengthens investor confidence.
Key Metrics:
- S&P Long-Term International Rating: BB- (Stable Outlook)
- Previous Domestic Upgrade: CRISIL AA+/Stable (April 9, 2026)
- CARE Rating: AA+; Stable (May 12, 2026)
- ICRA Rating: AA+/Stable (May 20, 2026)
Highlight:
- All major rating agencies have upgraded Sammaan Capital’s ratings following IHC’s strategic investment, culminating in S&P upgrading the company’s international rating to BB- with Stable Outlook.
What Happened ?
S&P Global Ratings upgraded Sammaan Capital Limited’s long-term international credit rating to BB- with Stable Outlook. The agency cited continued strengthening of the company’s credit profile after the strategic investment by International Holding Company PJSC (IHC).
According to the company, S&P expects improvement in business profile, stronger capitalization, enhanced funding access, and higher profitability going forward.
Key Details
Rating Upgrade and Strategic Funding Benefits:
- S&P upgraded the company’s long-term international credit rating to BB- with Stable Outlook.
- The upgrade follows the strategic investment by International Holding Company PJSC (IHC) completed on March 31, 2026.
- S&P expects improvements in:
- Business profile
- Funding access
- Capitalization levels
- Profitability
- CRISIL upgraded the company to AA+/Stable on April 9, 2026.
- CARE upgraded the company to AA+; Stable on May 12, 2026.
- ICRA upgraded the company to AA+/Stable on May 20, 2026.
- All major rating agencies covering the company have now upgraded their ratings after the IHC investment.
Note:
- Management highlighted that the rating upgrades have already started translating into stronger market confidence and lower incremental borrowing costs.
Risk Analysis
Summary:
- While the rating upgrade materially strengthens the company’s funding profile, future performance will depend on maintaining asset quality, executing growth plans, and sustaining profitability improvements.
Key Risks:
- Benefits from rating upgrades may take time to fully reflect in borrowing costs.
- Execution of growth strategy remains critical to justify improved credit assessments.
- Funding conditions and credit markets remain subject to broader macroeconomic factors.
- Any deterioration in capitalization or asset quality could affect future rating outlooks.
Worst Case Scenario:
- If profitability, capitalization, or credit quality weaken materially, rating agencies could revise outlooks or ratings in future review cycles.
Risk Level: Low
Company Commentary
- S&P’s upgrade reflects continued strengthening of Sammaan Capital’s credit profile.
- Enhanced funding access is expected to support future business growth.
- Lower cost of funds should improve competitiveness and support higher disbursements.
- The company believes the improved credit profile will accelerate execution of its growth strategy.
- Successive rating upgrades have already contributed to improved market confidence.
Official Exchange Filing: Sammaan Capital Limited