S&P rates Manappuram Finance BB-

S&P said it assigned its BB- long-term credit ratings to Manappuram Finance Ltd.

“The rating on Manappuram reflects the company’s exposure to economic risk in India, its only market. We believe Indian finance companies face greater operating risk than banks because they usually have no access to central bank funding, and have less onerous regulations – notwithstanding some regulations on capital adequacy, asset quality, and asset-liability management,” said S&P in a press release.

The company has total loans of about $2.8 billion outstanding, and it has an estimated market share of about 5% of total gold lending.

The outlook is stable.

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