Muthoot Finance Limited — Updates, 03-04-2025: Press Release

Moody's Ratings has upgraded Muthoot Finance's long-term issuer rating to 'Ba1' from 'Ba2' with a stable outlook. This upgrade reflects the company’s strong credit profile and its leading position in the gold financing sector in India. Muthoot's operational controls and robust risk management practices have supported consistent loan growth and stable asset quality, even amidst competitive pressures from banks and non-banking financial institutions. The company's profitability stands out, with a net income to average managed assets ratio of 4.9% for the nine months ended December 2024, buoyed by a high net interest margin and low credit costs on gold financing. The tangible common equity to total managed assets was approximately 23.3% at the end of December 2024. Managing Director George Alexander Muthoot expressed confidence in the company’s performance and commitment to sustainable growth. The rating upgrade is viewed as a positive indicator for stakeholders, emphasizing Muthoot Finance’s resilience and strong market position. Investors should monitor this development closely for future opportunities.