CRISIL has reaffirmed 'A+/Stable' ratings on the bank loan facilities and debt instruments of Manappuram Finance. The ratings continue to reflect the track record of the company's promoters in the business of financing against gold jewellery.

The ratings also factor in the company's robust capitalisation and stable funding sources. These rating strengths are partially offset by Manappuram Finance's susceptibility to changes in the regulatory and legislative framework and to the risk of geographical and product concentration in its revenue profile.

CRISIL believes that Manappuram Finance will continue to benefit from robust capitalization and stable funding profile over the medium term. The outlook may be revised to 'Positive' if the company improves its competitive positioning and earnings significantly while diversifying its resource profile.

Conversely, the outlook may be revised to 'Negative' in case of steep decline in its asset quality, profitability or capitalization, or inability to borrow funds adequately from diverse sources to support growth.

Shares of the company declined Rs 0.75, or 3.15%, to settle at Rs 23.05. The total volume of shares traded was 1,156,527 at the BSE (Wednesday).