Moody's downgrades IIFL Finance's secured debt, changes outlook to stable

Agency says rising Delinquencies, defaults to hit profitability

Moody's has downgraded IIFL Finance Ltd's corporate family rating (CFR) and secured debt from “B1” to “B2” on prospects of deterioration in asset quality and profitability due to a rise in loan delinquencies and defaults.

The rating outlook has been changed to stable from rating under review. Today's rating action concludes the review for downgrade initiated on May 29, 2020, rating agency said in statement.

It also downgraded senior secured medium-term note (MTN) program from “B1” to “B2”.

The weakening will be driven by declining earnings and cash flow at its customers due to the deep coronavirus-led economic contraction.

Loans to small and medium-sized