CRISIL’s upgrades IIFL Finance’s outlook to stable, reaffirms long-term rating on debt instrument and bank facilities

Ratings agency CRISIL on September 30 upgraded IIFL Finance’s outlook to stable. “The rating action follows lifting of the regulatory embargo on the gold loan business of IIFL Finance, disclosed by the company vide the announcement dated September 19, 2024, thereby allowing the group to resume sanctions and disbursements in this segment as in the normal course of business, as well securitization/assignment/sale of loans,” the agency said in a press release.

The agency also has reaffirmed its long term rating to ‘Rating Watch with Developing Implications’ on the non-bank lender’s debt instrument and bank facilities. “CRISIL Ratings has removed its long-term rating on the debt instrument and bank facilities of IIFL Finance from ‘Rating Watch with Developing Implications’ and has reaffirmed the rating at ‘CRISIL AA/CRISIL PPMLD AA’ while assigning a ‘Stable’ outlook. The short-term rating has been reaffirmed at ‘CRISIL A1+’.” the agency said.

It added that with the regulatory restriction being removed, the group is expected to focus on regaining its market share in the gold loan business. “The company having taken requisite corrective measures following the action by the Reserve Bank of India (RBI), the group is expected to focus on regaining its market share in the gold loan business which should support restoration of its market position and profitability, which had moderated during the embargo,” the agency said.

Lifting of embargo