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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.