S&P upgrades Muthoot Finance ratings to 'BB+' with stable outlook

Muthoot Finance (BSE: MUTHOOTFIN) announced that S&P Global Ratings upgraded its long-term issuer credit rating to 'BB+/B' with a 'Stable' outlook, up from 'BB/B'. The upgrade reflects S&P's confidence in Muthoot's ability to maintain excellent capital and earnings over the next 12 months, benefiting from a strengthened regulatory environment. While S&P expects some stress in the asset quality of Muthoot's microfinance subsidiary, it anticipates the company will maintain overall asset quality, driven by its highly collateralized gold loan portfolio. George Alexander Muthoot, Managing Director, stated the upgrade reflects the company's progress in strengthening its balance sheet, profitability, and sustainable growth strategies. He emphasized the confidence external stakeholders have in Muthoot's ability to navigate dynamic market conditions and maintain financial resilience.