📈 Fitch Rates Asia Asset Finance’s Rs 2 Bn Debenture Issue at 'A+(EXP)(lka)'

Fitch Ratings has assigned an expected National Long-Term Rating of 'A+(EXP)(lka)' to Asia Asset Finance PLC’s (AAF) proposed Sri Lankan rupee-denominated senior unsecured debenture issue of up to LKR 2 Bn. Key details of the issuance and rating drivers include: • Issue Details: Proposed senior unsecured debentures will have a 5-year maturity and will be listed on the Colombo Stock Exchange (CSE). Proceeds are aimed at expanding AAF’s loan book. • Ranking & Seniority: The debentures rank equally with the claims of AAF’s other senior unsecured creditors, matching AAF’s National Long-Term Rating of 'A+(lka)'/Stable. • Parental Support: The rating reflects expected extraordinary support from India-based parent Muthoot Finance Ltd (MFL), which holds a 78.4% stake in AAF. MFL is India's largest gold-backed lender and has a record of equity support and operational alignment with AAF in gold-backed lending. • Credit Assessment: AAF’s rating is support-driven by MFL, as its standalone credit profile is assessed as significantly weaker. Any change in AAF’s overall National Long-Term Rating will directly impact this debenture rating.