Crisil Ratings has upgraded the rating of Muthoot FinCorp Ltd. from ‘A’ (stable) to ‘A+ (stable)’.
This rating upgrade is the reflection of the company’s healthy performance in gold loan portfolio, its established position in the country’s gold loan business; its strong fundamentals; its healthy performance manifested by steady growth in assets under management (AUM), sound asset quality and increased earnings profile, as per Crisil Ratings.
“The rating upgrade by Crisil is very significant in strengthening the confidence of our lenders and retail investors. The upgrade will also enable the company to widen its retail and corporate investor base,” said Thomas John Muthoot, CMD.
The rating upgrade also underscores a high degree of safety regarding the timely servicing of the company’s NCDs.
“The rating signals that Muthoot FinCorp’s business profile will continue to be supported by its established market position in the gold loan segment strengthened by the promoters’ extensive experience in the gold loan industry, healthy asset quality, and improving earnings profile in the gold loan portfolio,” the company said in a statement.
