Latest News | Fitch Ratings Takes Rating Action on Four NBFCs

Mumbai, Sep 21 (PTI) Fitch Ratings on Monday took rating action on the long-term issuer default ratings of four non-bank financial companies, including Shriram Transport Finance (STFC) and Muthoot Finance (MFL) amid the coronavirus pandemic challenges.

Also Read | OnePlus 8T India Launch Date Officially Announced.

The agency also took rating action on IIFL Finance and Manappuram Finance (MFIN).

Also Read | MSP of Six Rabi Crops Raised Day After Passage of Farm Bills; Check Revised Rates of Wheat, Barley, Mustard, Safflower, Lentil and Gram.

The ratings of these entities continue to reflect the considerable economic and financial challenges arising from the pandemic, the global rating agency said.

STFC's rating has been affirmed at 'BB' and Rating Watch Negative (RWN) has been removed.

"The RWN on STFC's ratings has been removed, as we believe near-term operational uncertainty is easing for the entity," the rating agency said.

However, the negative outlook on STFC highlights the ongoing downside risk to asset quality and the implication for the company's funding and liquidity, which the agency expects will only become apparent in the medium term.

IIFL Finance Limited 'B+' rating has been maintained on RWN due to continued uncertainty on its funding and liquidity, with trends potentially becoming more evident within the next six months.

MFIN rating has been affirmed at 'BB-' and RWN has been removed. Muthoot Finance's rating has also been affirmed at 'BB' but RWN has been removed. The agency has kept stable outlooks on MFIN and MFL.

“The removal of the RWN and stable outlooks on MFIN and MFL's ratings reflect the entities' generally resilient performance in the face of significant economic disruption amid local measures to contain the pandemic,” the agency said.

The companies' long-term IDRs were placed on RWN in March this year, as Fitch expected the pandemic to present further macroeconomic and funding challenges for the entities, heightening downside risk to their credit profiles.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)