Fitch assigns BB+ rating to Muthoot Finance

Muthoot Finance credit agency ratings

Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio.

Muthoot Finance Ltd. has been assigned Long Term rating of ‘BB+’ with ‘Stable’ Outlook by Fitch Ratings. S&P Global Ratings has assigned a Long Term rating of ‘BB’ with ‘Stable’ Outlook. Moody’s Investor Service has assigned ‘Ba2’ Corporate Family Rating with ‘Stable’ Outlook.

These ratings will enable Muthoot Finance to access international debt market.

George Alexander Muthoot, Managing Director, on this occasion, stated “This is another achievement by Muthoot Finance and it is a recognition of its leading and long track record in gold loan business. With this rating, we are expecting to access international debt markets, which will enable us to further expand our business and also diversify our borrowing mix.”

According to Fitch Ratings report ‘The ratings take into account Muthoot Finance’s well-established franchise in the niche segment of gold-backed financing, its low credit losses and satisfactory leverage.’

According to S&P Global Ratings report ‘The ratings on Muthoot Finance are driven by the company’s very strong capital and earnings, with the risk-adjusted capital ratio at above 45%. Muthoot Finance also has a strong market position in loans against gold although it is relatively small in the overall financial sector in India.’

According to Moody’s Investor Service report ‘Rating takes into account the company’s:

(1) leading franchise and well established track record in lending against the gold jewelry segment in India, and (2) strong solvency metrics, including asset quality, capital and profitability’