ICRA has upgraded long term debt rating of Muthoot Finance from “AA-/STABLE“ TO “AA/STABLE”. Long term debt rating covers debt instruments of above one year. Short term debt rating covers debt instruments of upto one year.
Under ICRA rating scale, “AA” rating carries a meaning “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.” ICRA may apply '+' (plus) or '-' (minus) sign to this rating to indicate their relative position within the category.
By this upgrade, the definition of ICRA rated long term debt instruments will change from “AA-“ to “AA” which indicates positive change in comparative standing within ‘AA’ rated category.
George Alexander Muthoot, MD, Muthoot Finance Ltd said: “The rating upgrade is a reflection of consistent performance inspite of going through turbulent times in the last four years as well as improvement in financial performance last year. This upgrade is a recognition of the efforts of ‘Team Muthoot’. We believe that under AA category, we enter a different league of credit rated companies. We hope this upgrade will enable us to get finer rates from financial institutions and banks enabling us to reduce our cost of borrowings.”