Manappuram Finance zooms on upward revision of debt ratings

CRISIL has revised the company's long-term debt instruments and bank facilities from 'Negative' to 'Stable'

Shares of Manappuram Finance jumped nearly 11% to Rs 23.50, the highest level since April 2013, after rating outlook on the company's debt exposure was revised upwards by CRISIL.

The rating agency said, it has revised rating outlook on the long-term debt instruments and bank facilities of Manappuram Finance from 'Negative' to 'Stable' while reaffirming the rating at 'CRISIL A+', the rating on the company's short-term debt has been reaffirmed at 'CRISIL A1+".

The outlook revision reflects the expected strucutural improvement in asset quality metrics, driven by recent regulatory changes. In addition, the asset quality challenges of the past that the company was facing due to high loan-to-value ratio loans have largely been resolved, CRISIL said in a report.

Over 7.7 million shares were traded on both the stock exchanges so far.