Fitch Affirms India Green Power Notes at BB- with Stable Outlook
- International Personal Finance plc has maintained its long-term issuer default rating and senior unsecured debt rating at 'BB' with a stable outlook, according to a rating action commentary...
- According to Fitch Ratings, International Personal Finance maintained a gross debt-to-tangible-equity ratio between 1.6x and 1.7x across 2023 and 2024.
- Profitability remained sound through 2024, with pre-tax income relative to average assets registering at 6.2%, down from 7.1% in 2023 according to Fitch Ratings.
International Personal Finance plc has maintained its long-term issuer default rating and senior unsecured debt rating at ‘BB’ with a stable outlook, according to a rating action commentary published by Fitch Ratings on May 29, 2025. The rating reflects the lender’s low balance-sheet leverage and structurally profitable business model, though higher-risk customers and potential regulatory shifts continue to constrain the profile.
Leverage and Credit Costs
According to Fitch Ratings, International Personal Finance maintained a gross debt-to-tangible-equity ratio between 1.6x and 1.7x across 2023 and 2024. The ratings agency anticipates a moderate increase in leverage over the medium term as the company expands its loan book and executes its progressive dividend policy alongside occasional share buybacks. Loan impairment charges are expected to normalize through 2025 and 2026. Fitch projects the ratio of loan impairment charges to average gross loans to rise between 11% and 14% over the next two years, following a recent low of 9.5% at the end of 2024 and 12.2% in 2023. The anticipated increase stems largely from the resumption of growth plans in Mexico, where credit costs typically run higher than in European markets.
Profitability and Refinancing Risk
Profitability remained sound through 2024, with pre-tax income relative to average assets registering at 6.2%, down from 7.1% in 2023 according to Fitch Ratings. The contraction reflects the introduction of a rate cap on credit cards in Poland, a shift in the Mexican portfolio mix toward existing customers who receive lower lending rates, and an overall reduction in the loan book. Fitch anticipates moderate profitability improvements through 2025 and 2026. Refinancing risk remains manageable as of late December 2024, when approximately £93 million of debt financing—representing about 18% of total funding—was scheduled to mature in 2025. International Personal Finance subsequently redeemed its remaining 2020 Eurobond of €66.7 million, equivalent to roughly £55 million, by April 1, 2025. However, the company faces a larger medium-term maturity involving a £282 million Eurobond due in December 2029, which accounted for 55% of funding at the end of 2024. Liquidity is supported by a cash-generative short-term loan portfolio with an average maturity of 13.5 months, alongside £122 million in funding headroom consisting of undrawn facilities and non-operational cash balances as of March 31, 2025.