Ratings agency CRISIL has downgraded rating of Kerela-based gold loan non-banking finance company Muthoot Capital Services to negative, citing volatility in gold prices and rising delinquencies of the company.
The rating agency has cut the rating of the company to A/FA/Negative/ A1 from A+/FA+/ Negative/ A1+.
The company has received the rating downgrade on account of weakening in the Muthoot Fincorp-MCSL combine’s profitability on account of elevated level of delinquencies along with gold price volatility and increased operating costs.
