Gold loan NBFC Muthoot Finance said on Tuesday that Crisil Ratings has upgraded its ratings on the long-term debt facilities to ‘CRISIL AA+/Stable’ from ‘CRISIL AA/Positive’.
CRISIL Ratings in its rating rationale has stated that “The upgrade is driven by Muthoot Finance’s demonstrated ability to profitably scale up its core gold loan business while maintaining its strong financial risk profile”, Muthoot said in a regulatory filing.
The NBFC further added that the rating upgrade will enable the company to raise more long-term debt funds as well as attract wider set of investors. This upgrade can further attract investments from retail investors in the public issue of NCDs in which the company has track record of 24 issuances raising Rs 17,392 crore cumulatively.
George Alexander Muthoot, managing director, said: “This is another golden feather on the cap for Muthoot Finance and it is a recognition of its leading and long sustained track record in gold loan business. With this rating upgrade, Muthoot Finance has become one of the few NBFCs who achieved this rating level on standalone basis without any parental support factored in rating.”