Motilal Oswal Financial Services Limited (MOFSL) announced an upgrade in its long-term credit rating to ‘IND AA+/Stable’ from ‘IND AA/Positive’ by India Ratings & Research Private Limited. The upgrade reflects MOFSL’s strengthened business profile, driven by growth in asset and wealth management, rising fee-based income, and sustained profitability. Key instruments including Non-Convertible Debentures and Bank Loan Facilities saw upgrades, while Commercial Papers were affirmed.
India Ratings Upgrades MOFSL’s Credit Rating
Motilal Oswal Financial Services Limited (MOFSL) has received a significant boost to its credit profile with India Ratings & Research Private Limited upgrading its long-term credit rating to ‘IND AA+/Stable’ from the previous ‘IND AA/Positive’. This upgrade signifies a positive assessment of the company’s financial health and operational performance.
Key Rating Drivers
The rating upgrade is attributed to several factors that have strengthened MOFSL’s business profile. These include:
- Continued scale-up in Asset and Private Wealth Management businesses.
- Increasing contribution from recurring fee-based income, enhancing earnings stability.
- Sustained profitability across key operating segments.
- Growing Assets Under Management (AUM) and an expanding customer franchise.
- Improved earnings diversification, reducing dependence on transaction-based income.
- Continued growth across business segments, supported by a diversified product mix and cross-selling capabilities across its integrated platform.
- Strong capitalisation, robust liquidity buffers, internal accruals, and fungible liquidity.
Instrument-wise Rating Details
The instrument-wise details of the ratings assigned are as follows:
| Instrument | Amount (Rs. in Crore) | Rating | Action |
| Non-Convertible Debentures (“NCDs”) – (Inter-changeable with Principal Protected Market-Linked Debentures) | 271.60 | IND AA+/Stable | Upgraded |
| NCDs | 727.00 | IND AA+/Stable | Upgraded |
| Bank Loan Facilities | 400.00 | IND AA+/Stable | Upgraded |
| Commercial Papers | 11,750.00 | IND A1+ | Affirmed |
Broader Impact of Rating Action
This upgrade underscores the company’s robust financial performance and strategic direction. It is expected to enhance investor confidence and potentially improve the cost of borrowing for the company and its subsidiaries, which include Motilal Oswal Home Finance Limited, Motilal Oswal Finvest Limited, and Motilal Oswal Wealth Limited.
Source: BSE
