Left Menu
Development News Edition

Fitch Ratings takes rating action on four NBFCs

Fitch Ratings on Monday took rating action on the long-term issuer default ratings of four non-bank financial companies, including Shriram Transport Finance (STFC) and Muthoot Finance (MFL) amid the coronavirus pandemic challenges. The agency also took rating action on IIFL Finance and Manappuram Finance (MFIN). The ratings of these entities continue to reflect the considerable economic and financial challenges arising from the pandemic, the global rating agency said.

PTI | Mumbai | Updated: 21-09-2020 22:00 IST | Created: 21-09-2020 22:00 IST
Fitch Ratings takes rating action on four NBFCs

Fitch Ratings on Monday took rating action on the long-term issuer default ratings of four non-bank financial companies, including Shriram Transport Finance (STFC) and Muthoot Finance (MFL) amid the coronavirus pandemic challenges. The agency also took rating action on IIFL Finance and Manappuram Finance (MFIN).

The ratings of these entities continue to reflect the considerable economic and financial challenges arising from the pandemic, the global rating agency said. STFC's rating has been affirmed at 'BB' and Rating Watch Negative (RWN) has been removed.

"The RWN on STFC's ratings has been removed, as we believe near-term operational uncertainty is easing for the entity," the rating agency said. However, the negative outlook on STFC highlights the ongoing downside risk to asset quality and the implication for the company's funding and liquidity, which the agency expects will only become apparent in the medium term. IIFL Finance Limited 'B+' rating has been maintained on RWN due to continued uncertainty on its funding and liquidity, with trends potentially becoming more evident within the next six months.

MFIN rating has been affirmed at 'BB-' and RWN has been removed. Muthoot Finance's rating has also been affirmed at 'BB' but RWN has been removed. The agency has kept stable outlooks on MFIN and MFL. “The removal of the RWN and stable outlooks on MFIN and MFL's ratings reflect the entities' generally resilient performance in the face of significant economic disruption amid local measures to contain the pandemic,” the agency said. The companies' long-term IDRs were placed on RWN in March this year, as Fitch expected the pandemic to present further macroeconomic and funding challenges for the entities, heightening downside risk to their credit profiles.


TRENDING

OPINION / BLOG / INTERVIEW

Uganda COVID-19 response: Was off to a good start but reopening dwindled prospects

Uganda has shown success in using health information to enhance efficiency of disease surveillance, reporting and monitoring. The success, however, has critical challenges confronting it as the country resumes normal activities....

New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Videos

Latest News

FEATURE-In Tibet, China preaches the material over the spiritual

Dzekyid, a 54-year-old barley farmer, presents himself as a role model for his neighbours and for the success of Chinas efforts to tie economic development to social control in Tibet.Dzekyids well-built house in Jangdam village has a hall f...

Soccer-Injured Castagne to miss Leicester's next three matches

Leicester City will be without Timothy Castagne until after the November international break after the Belgian full back suffered a hamstring injury, manager Brendan Rodgers said. Castagne, who joined Leicester from Atalanta last month, was...

Woman goes to prison over powder sent to Senator Susan Collins

A woman convicted of mailing a letter containing powder to the Maine home of US Senator Susan Collins was sentenced Thursday to 30 months in prison. US District Judge Lance E Walker imposed the sentence on Suzanne Muscara, 38, of Burlington...

RBNZ signs 'IBOR Fallbacks Protocol' published by ISDA

The Reserve Bank of New Zealand Te Ptea Matua has signed the IBOR Fallbacks Protocol published by the International Swaps and Derivatives Association ISDA.As a market participant, this is an important step for the Bank to support an effect...

Give Feedback