IIFL Finance Limited has announced that Fitch Ratings, Inc. has assigned a 'B+' rating and a 'RR4' Recovery Rating to the company's Fixed Rate Senior Secured Notes. These notes are part of IIFL Finance's USD 1.5 billion Global Medium Term Note Programme. The specific issuance being rated is USD 300 million 7.60% Fixed Rate Senior Secured Notes due July 2030. Fitch's rating is in line with the expected rating assigned on July 2, 2026, following the receipt of final documentation. The notes are secured by specified assets and receivables of the issuer. Covenants include maintaining regulatory capital requirements, a net 90-day non-performing loan ratio of no more than 5%, and a security coverage ratio of at least 1.0x at all times. The issuance is under the Reserve Bank of India's external commercial borrowings framework. Fitch rates the senior secured notes at the same level as IIFL Finance's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'B+' with a Positive outlook, as they represent the issuer's secured obligations. The rating may be downgraded if recovery prospects weaken or if there is a negative action on the company's IDR. An upgrade of the IDR would result in a similar action on the bond rating.
