The international rating agency Fitch Ratings has assigned a B- rating to the bonds of the financial technology company Iute Group. According to the company’s CEO, achieving a credit rating is a crucial milestone in building the international Iute Group.

Iute Group, which specializes in credit, payment, and insurance brokerage services in the Balkan region and has its bonds listed on the Frankfurt and Nasdaq Baltic stock exchanges, has received a long-term issuer credit rating of B- with a stable outlook from Fitch. Fitch’s long-term issuer credit rating reflects the company’s ability to meet its financial obligations.

Tarmo Sild, CEO of Iute Group, stated that the rating is a cornerstone of the company’s capital market strategy. “We are very pleased to have received a credit rating from one of the world’s top three rating agencies. Achieving this allows us to shift gears on the international bond markets,” he said.

“The credit rating assigned to Iute is a good start. However, we have room for improvement in the risk and return ratio,” Tarmo added, stating that Iute aims to continuously develop activities in the capital markets alongside its business operations.

Kristel Kurvits, CFO of Iute Group, believes that the credit rating that Iute received, should also attract interest from investors who have been rather skeptical so far. “The credit rating assures investors that Iute as a company is transparent and that our bond is a secured investment,” she explained.

Iute’s secured senior bonds, with a total volume of 125 million euros, mature on October 6, 2026. The nominal value of bonds is 100 euro, and interest is paid out to investors semi-annually at a coupon rate of 11%. The bonds are freely tradable daily on the Tallinn Stock Exchange for Estonian investors.

Earlier this year, Iute Group announced strong first-quarter financial results, with a revenue of 26.4 million euros and a net profit of 2.2 million euros. By the end of the year, the group targets revenues of 120 million euros and a profit of 15 million euros. Iute will present its second-quarter and first-half financial results on August 22.

Iute Group is a fintech company established in 2008 in Estonia. The Group specializes in consumer finance, payment services, banking, and insurance products. It serves customers in Albania, Bulgaria, Moldova, and North Macedonia. Iute Group finances its loan portfolios with equity, deposits, and secured bonds on the Regulated Market of the Frankfurt Stock Exchange and the Nasdaq Baltic Main List.