Sammaan Capital ratings rise to AA+; FY28 AAA plan

Introduction

Sammaan Capital Limited (SCL) has reported a set of credit rating upgrades across domestic and international agencies, and linked those actions to a faster decline in its borrowing costs. In a recent statement and presentation, the company said domestic ratings moved from AA to AA+, while the international rating improved from B+ to BB- within 90 days of International Holding Company (IHC) Group’s investment. SCL positioned the upgrades as a key input into its funding strategy, with an explicit glide path for lower cost of funds over the next few years.

The company also shared operating datapoints alongside the ratings commentary, including a low net non-performing assets (net NPA) ratio of 0.15%. While SCL did not provide equity market reaction data in the material shared, the sequence of upgrades and the stated cost-of-funds targets are central for investors tracking funding-dependent businesses such as housing finance.

What changed in SCL’s ratings

SCL said it achieved AA+ consensus ratings from major domestic agencies, and an international rating upgrade by S&P Global. The company described the domestic move as an upgrade from AA to AA+, and the global move as B+ to BB-, both with Stable outlooks where specified.

According to SCL, rating agencies including CRISIL, CARE and ICRA took rating actions on the company’s debt instruments, with CRISIL and CARE upgrading long-term ratings to AA+/Stable from AA. Separately, S&P Global upgraded SCL’s international rating to BB-/Stable from B+ within about 90 days of IHC’s investment. SCL said it expects further upgrades over time, including to domestic AAA and international BB+, and stated an eventual ambition to reach BBB internationally.

IHC investment and promoter backing

CRISIL’s stated rationale, as referenced by the company, tied the upgrade to a “substantial strategic investment” and promoter backing from the IHC Group. SCL said an initial tranche of ₹5,652 crore was infused on March 31, 2026, which officially established IHC as the promoter.

In SCL’s framing, the investment and the promoter support improved the company’s capitalisation and strengthened its overall credit fundamentals. The company also linked this to stronger growth prospects under IHC’s leadership, as captured in the rating agency commentary cited in the material.

Borrowing costs: incremental vs overall cost of funds

SCL emphasised that rating upgrades have had a direct impact on its funding costs. It said incremental cost of funds declined to 9% from 10.5% following the upgrades. The company also noted that its cost of funds eased to 10% from 10.5% at the start of the quarter.

Alongside current levels, SCL shared a multi-year trajectory for further reductions. It set a year-end target of 9.3% for cost of funds, and a longer-term aspiration of 7% to 8% over the next 2 to 3 years. In its longer-dated targets, SCL said incremental cost of funds could dip to 7.8% by FY28, and then to 7.2% by FY29 to FY30.

Domestic rating actions: CRISIL, CARE, ICRA and others

SCL referenced multiple domestic rating actions across agencies and instruments. It said CRISIL upgraded its long-term debt rating to AA+/Stable, and reaffirmed the short-term debt rating at CRISIL A1+.

In a disclosure dated May 13, 2026, SCL said CARE Ratings upgraded the long-term debt programme by two notches to CARE AA+; Stable. CARE also reaffirmed the rating assigned to Commercial Paper and Short-Term Non-Convertible Debentures at CARE A1+. Additionally, CARE upgraded the rating assigned to the company’s perpetual debt instruments to CARE AA/Stable from CARE A+.

SCL also stated that it is ‘AA+/Stable’ rated by CRISIL and ‘AA/Stable’ by ICRA. The material also included ICRA’s June 26, 2025 note where ICRA reaffirmed an [ICRA]AA (Stable) rating on NCDs. Separately, Brickwork Ratings’ April 8, 2025 action reaffirmed BWR AA+/Stable on certain NCD issues and BWR A1+ on commercial paper, as cited in the provided text.

International rating action by S&P Global

On the international side, SCL said S&P Global upgraded the company’s rating to BB- (Stable) from B+ within 90 days of IHC’s investment. The company’s narrative connected the quicker global upgrade cycle to improved credit comfort following the promoter change and capital infusion.

SCL’s presentation and statements also outlined a target of moving to BB+ type of international credit ratings through the course of the second half of the year and into FY28, while also flagging a longer-term goal of improving the international rating to BBB.

Asset quality snapshot and regulatory context

Alongside funding metrics, SCL said net non-performing assets remained low at 0.15%. The company also stated it is regulated by the Reserve Bank of India (RBI). While the provided material did not include portfolio size, disbursement growth, or profitability metrics, the inclusion of net NPA indicates management’s focus on maintaining asset quality while working to reduce funding costs.

For lenders, rating upgrades and asset quality indicators often move together in investor narratives because both influence access to funding and the pricing of incremental borrowings. In SCL’s case, the company explicitly presented the rating cycle as a driver of lower incremental cost of funds.

Roadmap to AAA by FY28: what SCL has said

A central theme in SCL’s presentation was an “ambitious roadmap” to achieve AAA domestic ratings by FY28, supported by operating strength and comfort from the IHC Group. SCL also said it is “fairly confident” of moving toward domestic AAA and international BB+ by FY28.

The company’s stated cost-of-funds targets are tied to this roadmap: incremental cost of funds at 7.8% by FY28, then 7.2% by FY29 to FY30. SCL presented these targets as being driven by both improved ratings and the ongoing support and backing from IHC.

Key facts at a glance

Conclusion

Sammaan Capital’s update centres on credit rating upgrades across India and global markets, following IHC’s capital infusion and promoter backing. The company linked these upgrades to a measurable reduction in incremental cost of funds from 10.5% to 9%, while also noting a decline in overall cost of funds to 10% from 10.5% at the start of the quarter.

Looking ahead, SCL has laid out specific milestones, including targeting AAA domestic ratings and BB+ international ratings by FY28, alongside incremental cost of funds targets of 7.8% by FY28 and 7.2% by FY29 to FY30. Any further rating actions by domestic agencies and S&P Global, and updates on the year-end cost-of-funds target of 9.3%, are likely to be key checkpoints for investors tracking the company’s funding trajectory.