CRISIL upgrades Muthoot Capital long-term rating to AA-/Stable
MUTHOOTCAP · price
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CRISIL upgraded Muthoot Capital Services long-term rating on bank facilities worth Rs 2,500 crore, NCDs, subordinated debt and fixed deposits to AA-/Stable from A+/Positive. Covers NCDs, subordinated debt and PPMLDs too. Short-term commercial paper rating on Rs 400 crore reaffirmed at A1+. Upgrade follows rating improvement in group firm Muthoot Fincorp. Company AUM grew 12.5% to Rs 3,441 crore. Asset quality remains modest with GNPA rising to 7% from 4.9%.
Positive for shareholders. Stronger credit profile may lower borrowing costs. Group support is key driver, but modest asset quality and weak earnings are concerns.