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MUTHOOT FINANCE GETS UPGRADATION IN RATING FOR LONG TERM DEBT: ICRA
17th August 2016: 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 in spite 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.”