Kolkata, 1st August, 2011: The rating agency CARE has upgraded the ratings of Magma Fincorp Limited for all its debt obligations.

Magma has an established and impeccable track-record towards timely payment of all its debt Obligations. The revised ratings are as under:

Rating for Bank facilities - upgraded from CARE AA to CARE AA+
Rating for Subordinated Debt - upgraded from CARE AA- to CARE AA
Rating for Perpetual Debt Instrument - upgraded from CARE A+ to CARE AA-
Rating for Secured Long Term Debt - upgraded from CARE AA to CARE AA+

Commenting on the upgrade, Mr V Lakshmi Narasimhan, CFO, Magma Fincorp Limited said, "The upgrade is a reflection of Magma's all round performance over several years on various aspects like portfolio quality, robust growth in disbursements, Consistent profitability and leveraging. This upgrade should reduce our cost of funds".

About Magma Fincorp Limited

Magma Fincorp Limited ("Magma") is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company. The Company, having started operations over two decades back, is listed on the Bombay Stock Exchange Limited and the National Stock Exchange in India.

Magma provides a bouquet of financial products including financing of Utility Vehicles & Cars, Commercial Vehicles, Construction Equipments, Tractors and SME Loans. Magma has a dedicated base of around 2.5 lac customers and has assets of INR 11030 crores under management. The company has 172 branches in 20 states and 1 union territory and employs about 5050 people.

Magma has signed a joint venture with HDI Gerling, part of Talanx Group, Germany's third largest insurance group to start a general insurance company in India, which since has received R1 license from the insurance regulator.