Business
S&P Upgrades IIFL Finance's Outlook to 'Positive' On Recovering Market Share in Gold Loans; 'B+/B' Ratings Affirmed
Credit Rating agency Standard and Poor's (S&P) Global Ratings has revised IIFL Finance's Outlook to 'Positive' from 'Stable' on recovering market share in gold loans, while affirming 'B+/B' ratings. S&P also affirmed its 'B+' long-term foreign currency issue rating on IIFL Finance's outstanding U.S. dollar-denominated senior secured notes.
About this update from S&p Global Inc.
[{"type":"text","content":"MUMBAI, India, Dec. 18, 2025 /PRNewswire/ -- Credit Rating agency Standard and Poor's (S&P) Global Ratings has revised IIFL Finance's Outlook to 'Positive' from 'Stable' on recovering market share in gold loans, while affirming 'B+/B' ratings. S&P also affirmed its 'B+' long-term foreign currency issue rating on IIFL Finance's outstanding U.S. dollar-denominated senior secured notes.","length":443,"tagName":"p"},{"type":"image","alt":"Nirmal Jain, Founder, IIFL Group","displaySize":"","headline":null,"caption":"Nirmal Jain, Founder, IIFL Group","className":"","disableSlideshowImg":false,"size":{"original":{"width":302,"height":400,"url":"https://media.zenfs.com/en/prnewswire.com/d8fdc3fd25ec00996a4bf34349d97a41"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/6gzsxZo0G0kY_lXOU31GMg--/YXBwaWQ9aGlnaGxhbmRlcjt3PTQyMDtoPTU1NjtjZj13ZWJw/https://media.zenfs.com/en/prnewswire.com/d8fdc3fd25ec00996a4bf34349d97a41","width":302,"height":400}},"href":"https://mma.prnewswire.com/media/2848526/Nirmal_Jain_IIFL_Group.html","hrefExternal":true,"rel":"nofollow"},{"type":"text","content":"S&P in its ratings rationale said, "The outlook revision reflects IIFL's strengthening market share in the gold financing business. This is a year after a central bank embargo on the company sanctioning or disbursing fresh gold loans was lifted. We expect IIFL to maintain very strong levels of capitalization over the next 12 months."","length":353,"tagName":"p"},{"type":"text","content":""We also anticipate the company's portfolio pruning and reduced exposure to microfinancing will lower its credit costs. We believe IIFL's credit costs will peak this fiscal year (ending March 31, 2026)."","length":221,"tagName":"p"},{"type":"text","content":"S&P expects IIFL to sustain its growth in gold-backed financing: S&P said, "The Company is benefitting from elevated gold loan prices and robust consumer demand. These factors, together with IIFL's extensive branch network, have helped the company grow its gold loans assets under management (AUM) by 2.2x in the 12 months to Sept. 30, 2025. IIFL's market share in the gold loan segment is now second only to Muthoot Finance Ltd. among nonbank financial institutions in India."","length":508,"tagName":...