CRISIL upgrades Muthoot Microfin’s long-term credit rating
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Sadaf Sayeed, CEO, Muthoot Microfin
Muthoot Microfin Ltd announced that Crisil Ratings has lifted its long‑term credit rating to Crisil AA‑/Stable from Crisil A+/Positive, while reaffirming the Crisil A1+ rating for its Commercial Paper.
The upgrade should broaden the company’s access to varied funding at more attractive rates, further trimming borrowing costs. The release noted that Muthoot Microfin has already cut its cost of funds from 11 % in FY25 to 10.3 % in Q4 FY26, with the incremental cost falling to 9.9 %. A stronger credit profile will help sustain this improvement, allowing the firm to tweak its liability mix and bolster net interest margins over the medium term.
Thomas Muthoot, Chairman and Non‑Executive Director, Muthoot Microfin, said, “During a time when the micro‑finance industry faces a tough operating climate, this rating upgrade highlights our resilient business model, sound governance, growing diversification and disciplined execution. It is especially heartening to be among the limited NBFC‑MFIs receiving a positive rating action in this period.”
Sadaf Sayeed, CEO, said, “This upgrade marks a key step toward our Vision 2030 targets of ₹30,000 crore AUM, an ROA above 5 % and a positive impact on ten million households. We stay committed to empowering underserved women and widening access to inclusive financial services across India.”
Published on June 11, 2026
