ICRA upgrades long-term debt rating of Muthoot Finance to AA-plus
New Delhi: ICRA has upgraded its ratings on long-term debt facilities of Muthoot Finance from AA to AA-plus with a stable outlook.
The rating upgrade factors in sustained healthy financial performance of Muthoot Finance along with scale-up in overall portfolio which is largely led by gold loans business.
The company's gold loan book has more than doubled over the last five years to Rs 49,622 crore as in December 2020 and accounted for 90 per cent of its overall consolidated portfolio. The credit costs in gold loan business have been under control which uplifts consolidated earnings performance.
ICRA expects Muthoot Finance's consolidated earnings performance to remain healthy.
Managing Director George Alexander Muthoot said: "With this rating upgrade from ICRA, Muthoot Finance has crossed a major milestone of AA-plus credit rating from two rating agencies, the earlier being from CRISIL. It is a recognition of its market leadership position in gold loan industry as well as strong financial position."
Muthoot said the achievement is on standalone basis without any parental support factored in rating. (ANI)