Fitch Upgrades Muthoot Finance to BB+ With Stable Outlook

Fitch Ratings has upgraded Muthoot Finance Ltd.’s long-term foreign and local currency issuer default ratings to BB+ from BB, with a stable outlook. The upgrade reflects the non-banking finance company’s stronger credit profile, competitive advantages, and improved risk management practices, the agency said on Friday.

Muthoot Finance reported a net profit of ₹20.46 billion in the April–June quarter, nearly double the ₹10.79 billion a year earlier, as business growth and margins expanded. Gold loan assets rose 40% year-on-year to ₹1.13 trillion.

The ratings on the company’s dollar medium-term note programme and senior secured debt remain linked to its issuer default rating, Fitch added.