Fitch affirms Iute Group’s B- rating with stable outlook

International rating agency Fitch Ratings has affirmed the B- rating with a stable outlook for Iute Group, a leading financial services provider in Southeast Europe, and B- rating for its outstanding bonds, citing the company’s solid financial position. The same rating has been assigned to the new Iute bonds issued earlier this year.

Iute Group, which offers credit, payment and insurance brokerage services and has its bonds listed on the Frankfurt and Nasdaq Baltic stock exchanges, was first assigned a long-term issuer credit rating of B- by Fitch last year. The rating was maintained at this year's rating review and extended to company’s newly issued bonds. Fitch’s long-term issuer credit rating reflects a company’s ability to meet its financial obligations.

Fitch, one of the world's three leading rating agencies, highlighted Iute Group’s strong market position in Southeast Europe, good profitability and disciplined risk management as key drivers behind the rating.

According to Kristel Kurvits, Chief Financial Officer of Iute Group, the confirmation of the rating at the current level shows that despite the changing economic environment, Iute Group's business model is resilient and the company maintains a stable financial position and consistent risk management.

“Fitch’s decision is an important signal that we are moving in the right direction – despite the expansion of the business, we have managed to maintain strong capitalization and credit quality,” said Kurvits. “The rating review gives investors confidence that Iute is transparent as a company and our bond is a secure investment,” she explained.

The rating also applies to Iute’s new senior secured bonds, issued in June with a total nominal value of 140 million euros. Each bond has a nominal value of 100 euros and pays interest to investors twice a year at a coupon rate of 12%. The bonds are freely tradable for Estonian investors on the Tallinn Stock Exchange.

Iute Group will publish its unaudited business results of the first half of 2025 on August 19. In the first quarter of 2025, the Group achieved 28.8 million euros in revenue and 3.4 million euros in net profit.

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.