Sadaf Sayeed, CEO, Muthoot Microfin
Muthoot Microfin Ltd has announced that Crisil Ratings has upgraded its long-term credit rating to CRISIL AA-/Stable from CRISIL A+/Positive. The company’s Commercial Paper rating has been reaffirmed at CRISIL A1+.The upgrade is expected to enhance the company’s access to diversified funding sources at competitive rates, supporting a continued reduction in borrowing costs. A press release said the company has already demonstrated significant progress in lowering its cost of funds, which declined from 11 per cent in FY25 to 10.3 per cent in Q4 FY26, while the incremental cost of funds has come down to 9.9 per cent. The improved credit profile will help sustain this trend, enabling the company to optimise its liability mix and strengthen net interest margins (NIMs) over the medium term.Thomas Muthoot, Chairman and Non-Executive Director, Muthoot Microfin, said, “In a period when the microfinance sector continues to navigate a challenging operating environment, this upgrade stands out as a recognition of our resilient business model, prudent governance, increasing diversification and disciplined execution. It is particularly encouraging to be among the few NBFC-MFIs to receive a positive rating action during this period.Sadaf Sayeed, CEO, said, “The upgrade is an important step toward our Vision 2030 goals of achieving ₹30,000 crore in AUM, having an ROA of 5 per cent+ and positively impacting 10 million households. We remain committed to empowering underserved women and expanding access to inclusive financial services across India.”Published on June 11, 2026
