Moody s affirms Muthoot Finance s outlook to stable from negative ANI | Updated: Dec 14, 2020 14:24 IST
It said the affirmation and change in outlook to stable reflect Muthoot s steady credit profile despite the economic contraction caused by coronavirus pandemic.
In addition, the rating action reflects Moody s expectation that Muthoot s financial performance will remain stable over the next 12 to 18 months, supported by its leading franchise and track record of providing loans against gold jewellery, superior profitability and strong capitalisation.
Over the past six months, a surge in gold price which backs about 90 per cent of the company s loans helped improve loan collections and disbursements with both exceeding their five-year averages in the quarter ended September.