Moody’s Ratings has upgraded Muthoot Finance Limited’s long-term issuer rating from ‘Ba2’ to ‘Ba1’ with a stable outlook.
In its announcement, Moody’s highlighted Muthoot’s strong credit profile, backed by its leadership in India’s gold financing sector and a consistent track record of operational excellence. The company’s robust risk management and underwriting standards have enabled steady loan growth and stable asset quality despite competition from banks and other financial institutions.
Muthoot Finance remains the most profitable among Moody’s rated Indian finance companies, with a net income to average managed assets ratio of 4.9% as of December 2024. Its high net interest margin and low credit costs have contributed to strong profitability, further strengthening internal capitalization, with a tangible common equity to total managed assets (TCE/TMA) ratio of 23.3%.
Commenting on the upgrade, George Alexander Muthoot, Managing Director, expressed gratitude to employees, customers, and stakeholders. He emphasized that the improved rating reflects Muthoot Finance’s financial resilience, disciplined risk management, and ability to navigate challenging market conditions. The company remains committed to sustainable growth, stakeholder value, and maintaining leadership in the financial services industry.