CRISIL Ratings in its rating rationale has stated that "The upgrade is driven by Muthoot Finance's demonstrated ability to profitably scale up its core gold loan business while maintaining its strong financial risk profile."

The rating rationale also stated that "Established track record and brand name in gold financing industry, Strong capitalization and Profitability among the best in the industry which is expected to remain healthy are the strengths of Muthoot Finance."

The change from 'AA' to 'AA+' signifies reaching the highest standing in the category and this rating is just one level below 'AAA' rating which is the highest rating for long term debt instruments. The rating denotes 'High Safety' and 'Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.'

This rating upgrade will enable the Company to raise more long term debt funds as well as attract wider set of investors. This upgrade can further attract investments from Retail Investors in the Public Issue of NCDs in which Company has track record of 24 issuances raising Rs.173.92 billion cumulatively. Moreover, Company will be able to raise funds at much more competitive rates.

George Alexander Muthoot, Managing Director, stated, "This is another golden feather on the cap for Muthoot Finance and it is a recognition of its leading and long sustained track record in gold loan business. With this rating upgrade, Muthoot Finance has become one of the few NBFCs who achieved this rating level on standalone basis without any parental support factored in rating."

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