CRISIL has upgraded its long-term rating on the bank facilities and debt instruments of Muthoot FinCorp Ltd. (MFL), to ‘CRISIL AA-.
It has also upgraded the ratings of the other Muthoot Pappachan Group (MPG) companies namely Muthoot Microfin Ltd, Muthoot Capital Services Ltd and Muthoot Housing Finance Company Ltd, to A+.
Thomas John Muthoot, chairman, MPG, said “These upgrades are driven by an improvement in the capitalisation profile and expected improvement in the earnings profile of MPG.”
“The capital infusion supported the capitalisation profile at both Muthoot FinCorp and Muthoot Microfinance. Consequently, the net worth at the consolidated level increased to an estimated ₹4,393 crore in Q1 2022 as compared to ₹3,595 crore in fiscal 2021,” he said.
“The rating continues to reflect MFL’s healthy performance and strong market position in the core gold loan portfolio, as indicated by steady growth in assets under management (AUM) and sound asset quality, despite the challenges created by the COVID-19 pandemic,” he further said.
