Business & Investment

S & P Upgrades Manaplum Finance Credit Ratings

S & P, an international rating agency, has upgraded Manaplum Finance Limited’s long-term issuer rating from “B +” to “BB-” and the outlook is stable. Rating agencies also confirmed the credit rating of the company’s “B” short-term issuers.

The company’s gold-based lending business has proven to be an effective counterbalance to the weaknesses of India’s microfinance segment, according to the rating rationale released by S & P. Manappuram Finance is expected to continue to outperform its non-gold peers in NBFC over the next 12 months in terms of asset quality and profitability. This is reflected in the company’s lower credit costs, above-average profitability and strong capitalization.

See also below. “Microfinance lenders should not put their profits above their social goals.”

Nandakumar, MD and CEO of Manappuram Finance, said: We expect the unorganized sector to recover and improve growth in gold loans, microfinance and other industries. “

May be stressful

S & P also said that Manaplum’s three-month period gold-based lending model allows early recognition of asset quality stress. However, Manaplum’s non-gold portfolio, especially the microfinance business, can remain stressful. Manappuram’s financing profile has also been improved, leaving significant exposure to short-term wholesale financing, but a shift to longer-term debt.

The agency expects Manaplum’s risk-adjusted capital ratio to continue to exceed 30% over the next 12 months, one of the highest among its peers. During this period, core revenue can be more than 5% of average managed assets.

S & P Upgrades Manaplum Finance Credit Ratings S & P Upgrades Manaplum Finance Credit Ratings

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