Fitch Ratings has taken rating action on the Long-Term Issuer Default Ratings (IDR) of four Indian non-bank financial institutions(NBFI) in light of the companies' performance amid the coronavirus pandemic. The rating actions are as follows:

- IIFL Finance 'B+' rating maintained on Rating Watch Negative (RWN)

- Manappuram Finance (MFIN), affirmed at 'BB-'; RWN removed; Outlook Stable

- Muthoot Finance (MFL), affirmed at 'BB'; RWN removed; Outlook Stable

- Shriram Transport Finance Company (STFC), affirmed at 'BB'; RWN removed; Outlook Negative

The RWNs on the bond ratings of MFIN, MFL and STFC have also been removed.

The companies' Long-Term IDRs were placed on RWN in March this year, as Fitch expected the pandemic to present further macroeconomic and funding challenges for the entities, heightening downside risk to their credit profiles.

IIFL Finance's rating remains on RWN due to continued uncertainty on its funding and liquidity, with trends potentially becoming more evident within the next six months. This is despite a steady improvement in collections over the past few months and easing fundingconditions, which have partly benefited from government support measures for NBFIs and other parts of the economy.

The removal of the RWN and Stable Outlooks on MFIN and MFL's ratings reflect the entities' generally resilient performance in the face of significant economic disruption amid local measures to contain the pandemic.

The RWN on STFC's ratings has been removed, as we believe near-term operational uncertainty is easing for the entity. However, the Negative Outlook highlights the ongoing downside risk to asset quality and the implication for the company's funding and liquidity, which we expect will only become apparent in the medium term.

The ratings on the entities' medium-term note (MTN) programmes and foreign-currencysenior debt are at the same level as the Long-Term Foreign-Currency IDRs, while STFC'srupee-denominated senior debt is rated at same level as its Long-Term Local-Currency IDRin accordance with Fitch's rating criteria.

Fitch has assigned a Recovery Rating of 'RR4' to IIFL Finance's senior secured debt inaccordance with Fitch's criteria for entities with a Long-Term IDR of 'B+' or below. TheRecovery Rating reflects Fitch's expectation for 'Average' recovery prospects fornoteholders in the event of a default.

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IIFL Finance has allotted 27,510 Equity Shares to the employee(s) of the Company on exercise of stock options under Employee Stock Option Scheme(s).

Upon allotment, the equity base of the Company stand increased from 37,83,68,057 to 37,83,95,567 Equity Shares of Rs. 2/- each.

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IIFL Finance has allotted 5000 Non-Convertible Debentures namely IIFL - Secured Redeemable Non-Convertible Market Linked Debentures 2021 -Series D8 of Face Value of Rs 1 lakh each, for cash at par, aggregating to Rs 50,17,95,000 (including cumulative interest of Rs 17,95,000), on Private Placement Basis.

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IIFL Finance approved the grant of 50,000 stock options under ESOS of the company, each option being convertible into one fully paid up equity share upon vesting.

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