Kochi, February 16, 2021: CRISIL Ratings has upgraded its ratings on the long-term debt facilities of Muthoot Finance Limited (Muthoot Finance) to 'CRISIL AA+/Stable' from ‘CRISIL AA/Positive’.
CRISIL Ratings in its rating rationale has stated that “The upgrade is driven by Muthoot Finance’s demonstrated ability to profitably scale up its core gold loan business while maintaining its strong financial risk profile.” The rating rationale also stated that “Established track record and brand name in gold financing industry, Strong capitalization and Profitability among the best in the industry which is expected to remain healthy are the strengths of Muthoot Finance Ltd”.
The change from ‘AA’ to ‘AA+’ signifies reaching the highest standing in the category and this rating is just one level below ‘AAA’ rating which is the highest rating for long term debt instruments. The rating denotes ‘High Safety’ and ‘Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.’
This rating upgrade will enable the Company to raise more long term debt funds as well as attract wider set of investors. This upgrade can further attract investments from Retail Investors in the Public Issue of NCDs in which Company has track record of 24 issuances raising Rs.17392crs cumulatively. Moreover, Company will be able to raise funds at much more competitive rates.
George Alexander Muthoot, Managing Director, on this occasion, stated “This is another
Golden feather in the cap for Muthoot Finance and it is a recognition of its leading and long sustained track record in gold loan business. With this rating upgrade , Muthoot Finance Ltd has become one of the few NBFCs who achieved this rating level on standalone basis without any parental support factored in rating.”
About Muthoot Finance Limited
Muthoot Finance Ltd, a “Systemically Important Non-Deposit Taking NBFC” (NBFC-ND-SI), is the largest gold loan NBFC in India. Its operating history has evolved over a period of 82 years since M George Muthoot (the father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887. The equity shares of the Company are listed on National Stock Exchange of India Limited and BSE Limited since 2011. It has a branch network of 4500 plus branches across 23 states, the national capital territory of Delhi and five union territories in India. It serves about 2,00,000 plus retail customers every day for Gold Loans and Other Products and has about 2,00,000 plus Retail Investor Base for its Non-Convertible Debentures. It employs over 25000 persons in its operations. Its loan assets stood at Rs.41, 611Crores as at March 31, 2020 and it generated Profit after Tax of Rs.3, 018Crores for FY 2020. Its net-worth stood at Rs.14, 178 Crores and had a Capital Adequacy Ratio of 26.38% as on December 31, 2020. Profit after Tax stood at Rs.2, 726Crores for the 9 months ended December 31, 2020 and loan assets stood at Rs.50, 391 Crores as at December 31, 2020.
No comments:
Post a Comment