Fitch Upgrades IIFL Finance to 'BB-'; Outlook Stable
Fitch Ratings has upgraded IIFL Finance's long-term issuer default rating to 'BB-' due to improved asset quality and a pivot toward secured lending. The company's gold-backed loan business has seen a rebound following the removal of regulatory restrictions.
Why it matters
Credit rating upgrades for major non-banking financial companies signal improved investor confidence and financial stability in the Indian lending sector.
MUMBAI, India , Aug. 18, 2026 /PRNewswire/ -- IIFL Finance Limited, which is one of India's leading non-banking financial companies today said that Fitch Ratings has upgraded IIFL Finance (IIFL) Long-Term Issuer Default Rating (IDR) to 'BB-' from 'B+'. The Outlook is Stable. Fitch has also upgraded the senior secured debt and global medium-note programme (GMTN) ratings to 'BB-' from 'B+'.
Fitch Ratings said, "The upgrade reflects sustained improvement in IIFL's credit profile, particularly its business and risk profiles, and asset quality. Loan growth rebounded following the lifting of regulatory restrictions on IIFL's gold-backed lending business in September 2024. This was supported by broadened funding flows supporting new disbursements in key product lines."
The upgrade also reflects stabilisation of asset quality and credit losses as IIFL pivots the portfolio towards secured lending categories.
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