Fitch assigns 'B+' rating to IIFL Finance's senior secured dollar bonds
This story was originally published at 17:25 IST on 2 July 2026
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--Fitch assigns 'B+' rating to IIFL Finance's dollar senior secured bonds
NEW DELHI – Fitch Ratings Thursday assigned a "B+" rating to IIFL Finance Ltd.'s proposed senior secured dollar bonds, with a recovery rating of "RR4". On Tuesday, Moody's Ratings had rated the upcoming issuance "Ba3", one notch higher than what Fitch has assigned.
The bonds will be issued under IIFL Finance's global medium-term note programme. Fitch said the increase in the size of the programme to $1.5 billion from $1 billion earlier did not have a rating implication. Fitch's long-term foreign-currency issuer rating on the Indian lender is also "B+" with a positive outlook.
IIFL Finance is among several banks and non-banking finance companies tapping the offshore dollar bond market in recent weeks, following a scheme introduced by the Reserve Bank of India last month. The central bank has announced a swap window to hedge proceeds from three- to five-year offshore foreign currency bond issuances until Sept. 30 at a concessional rate of 1.5% per annum. Axis Bank and HDFC Bank have recently raised dollar-denominated debt offshore after the RBI's scheme came into force.
Fitch said the proposed issuance from IIFL Finance had only average recovery prospects in the event of a default, despite the notes being secured. The notes are also subject to a cross-acceleration clause, which says the acceleration of debt by the lender or any key subsidiaries may constitute a default.
"There has been no adverse lender action over the microfinance subsidiary's breach of certain delinquency-related loan covenants in the financial year ended March 2025, with the relevant delinquency ratio improving over the past 12-18 months," the ratings agency said. "IIFL Finance's principal subsidiaries continue to meet all repayment obligations."
On Thursday, IIFL Finance's shares ended at INR 518.70 apiece on the National Stock Exchange, up 4.7% from Wednesday. The rating came during market hours. The non-bank lender had reported a consolidated net profit of INR 5.87 billion for the March quarter on a total income of INR 37 billion. End
US$1 = INR 95.39
Reported by Aaryan Khanna
Edited by Rajeev Pai
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