Mumbai, August 18, 2026: IIFL Finance Limited, one of India's leading non-banking financial companies (NBFCs), announced that Fitch Ratings has upgraded its Long-Term Issuer Default Rating (IDR) to 'BB-' from 'B+'. The Outlook has been assigned as Stable. Fitch has also upgraded the ratings on IIFL Finance's senior secured debt and its Global Medium-Term Note (GMTN) programme to 'BB-' from 'B+', while withdrawing the Recovery Rating on the senior secured debt.

The upgrade reflects a sustained improvement in the company's overall credit profile, with Fitch pointing specifically to strengthened business and risk profiles along with improving asset quality. According to the rating agency, loan growth picked up pace after regulatory restrictions on IIFL's gold-backed lending business were lifted in September 2024, a recovery that was further supported by wider funding access enabling fresh disbursements across the company's key product lines.
Fitch also noted that asset quality and credit losses have stabilised as IIFL continues to shift its loan portfolio toward secured lending categories, a strategic direction the company has been pursuing over the past couple of years.

Commenting on the development, Vikas Jain, CFO of IIFL Finance, said the company was encouraged by the upgrade and the accompanying Stable Outlook, noting that it reflects steady gains across the business, risk, asset quality, profitability, and funding parameters. He added that the company intends to continue prioritising disciplined growth, a largely secured lending book, sound risk management, and prudent capital and liquidity practices.
On the business front, Fitch highlighted that IIFL Finance has been steadily regaining market share in gold-backed loans over the last two years, aided by its pan-India branch network, competitive loan pricing relative to larger peers, and successful co-lending and direct-assignment partnerships with banks that continue to support growth in assets under management (AUM).

Key Highlights

• Fitch Ratings upgraded IIFL Finance's Long-Term Issuer Default Rating (IDR) to 'BB-' from 'B+', with a Stable Outlook.
  
  

• Senior secured debt and the Global Medium-Term Note (GMTN) programme ratings were also upgraded to 'BB-' from 'B+'; the Recovery Rating on senior secured debt was withdrawn.
  
  

• The upgrade is driven by improved business and risk profiles, stabilising asset quality, and a rebound in loan growth.
  
  

• Growth resumed after regulatory restrictions on IIFL's gold-backed lending business were lifted in September 2024.
  
  

• The company's continued shift toward secured lending categories has supported the stabilisation of credit losses.
  
  

• IIFL Finance has regained gold-loan market share over the past two years, supported by its nationwide branch presence and bank co-lending/direct-assignment tie-ups.
  
  

• Management reaffirmed its focus on disciplined growth, a secured lending mix, strong risk management, and prudent capital and liquidity management.
  
  

Conclusion
The rating upgrade marks a meaningful milestone in IIFL Finance's credit journey, reflecting the tangible results of its focus on secured lending, disciplined growth, and prudent risk and capital management following a period of regulatory disruption. For NBFCs and other lending institutions, this development is a useful reference point — it illustrates how sustained improvement in asset quality, funding access, and business fundamentals can translate into a stronger external credit rating over time. Companies navigating similar rating journeys can draw on such examples to understand what rating agencies weigh when assessing credit profiles, and how a well-structured, methodical approach to rating preparedness can support long-term outcomes.

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Source: ETBFSI ( ET BFSI)