Credit rating agency, CRISIL has assigned ‘AA-/Negative’ rating to the Rs 300 crore non-convertible debentures (NCDs) and Rs 300 crore subordinate bonds of Muthoot Finance, while the rating agency has also reaffirmed ratings on the company’s other debt instruments at ‘AA-/Negative’ and ‘A1+’. The outlook revision was driven by the company’s exposure to the risk of increase in delinquencies due to the abnormal fluctuation in gold prices.
Recently, ICRA assigned the rating of ‘AA-’ with ‘negative’ outlook to the Rs 300 crore Non Convertible Debenture Programme (NCD) and Rs 300 crore Subordinate Debt programme of Muthoot Finance (MFL).
Muthoot Finance is a non-deposit taking systemically important non-banking finance company (NBFC). It is primarily in the business of lending against used household gold jewellery to individuals.
