Credit rating agency, ICRA has assigned the rating of ‘AA-’ with ‘negative’ outlook to the Rs 500 crore Non Convertible Debenture (NCD) Programme and Rs 500 crore Subordinate Debt programme of Muthoot Finance. Further, the rating agency has an outstanding rating of ‘AA-’ to various NCDs, Subordinate debt programme, and long term bank lines of the company and an outstanding rating of ‘A1+’ on the Rs 200 crore Commercial Paper programme of the company.
The ratings of the company continues to factor in the company’s strong branch network (4229 branches as on 30th September 2013) and its promoters knowledge of operating in the niche gold loan business segment, its good monitoring and internal audit systems and its comfortable capitalization levels.
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.