Fitch Ratings upgraded IIFL Finance”s long-term issuer default rating to ”BB-” from ”B+”, citing improved credit profile, asset quality, and the lifting of its gold loan ban.
Fitch has also assigned a stable outlook to the NBFC firm, IIFL Finance, the rating agency said in a statement.
The upgrade reflects sustained improvement in IIFL’s credit profile, particularly its business and risk profiles, and asset quality, it said.
Loan growth rebounded following the lifting of regulatory restrictions on IIFL’s gold-backed lending business in September 2024, it said.
The Reserve Bank of India lifted the ban in September, 2024 on IIFL Finance’s gold loan business, which was imposed in March of the same year due to violations in gold purity certification and loan-to-value ratio.
“This was supported by broadened funding flows supporting new disbursements in key product lines. The upgrade also reflects stabilisation of asset quality and credit losses as IIFL pivots the portfolio towards secured lending categories,” it said.
Commenting on the rating upgrade, IIFL Finance Chief Financial Officer (CFO) Vikas Jain said, the upgrade recognises the sustained improvement in our business and risk profile, asset quality, profitability and funding access.”
The company remains focused on disciplined growth, a predominantly secured lending portfolio, strong risk management and prudent capital and liquidity management, he said.