CRISIL has upgraded long term debt rating of Muthoot Finance to AA/ Stable from AA-/Stable. Long term debt rating covers debt instruments of above one year whereas short term debt rating is for debt instruments of upto one year. Crisil in its rating rationale has stated,

'The upgrade reflects the resilient business risk profile of Muthoot Finance as demonstrated during the past few years during which the gold loan sector went through challenging times, and the company’s strong earnings profile. The rating upgrade also factors in a stable operating environment with an established regulatory regime.' Commenting on Crisil ratings upgrade and the business outlook, George Alexander Muthoot, MD, Muthoot Finance said, ''The rating upgrade is a reflection of the improved   FY16 performance and the consistent performance in spite of industry going through turbulent times in the last four years.'' 

He further said, ''This upgrade is recognition of the efforts of 'Team Muthoot'. We believe that, under AA category, we enter a different league of credit rated companies. We hope this upgrade will enable us to get better rates from financial institutions and banks enabling us to reduce our cost of borrowings.'' Under CRISIL rating scale, AA rating will fall under 'High Safety' category and carries very low credit risk. Under short term debt rating, Muthoot Finance already has highest rating from CRISIL with A1+ rating which is considered to have very strong degree of safety and carries lowest credit risk.

Shares of the company declined Rs 3.85, or 1.32%, to settle at  Rs 288.50.  The total volume of shares traded  was  50,586 at the BSE (4Friday).