Ind-Ra assigns ‘IND AA+/Stable’ rating to Shriram Finance’s additional NCDs

4 Jan 2023 , 02:59 PM

Shriram Finance Limited informed that the rating agency India Ratings has assigned an ‘IND AA+’ rating to its additional NCDs worth Rs4,150 crore. The outlook has been assigned as ‘Stable’.

The rating agency has reaffirmed the rating on its existing NCDs worth Rs28,805.93 crore at ‘IND AA+’, with a Stable outlook.

Further, the rating on the short-term debt/ commercial paper programme of the company has been reaffirmed at ‘IND A1+’.

The agency believes that the merged entity’s operating profile will improve in the medium term because the merger expands STFC’s franchise by making it a multi-product company and strengthens its position among the leading non-banking finance companies (NBFCs).

SFL remains focused on the opportunity to cross-sell to its large, existing, and previously served customer base via its expansive branch networks and by expanding its digital and analytics capabilities.

Ind-Ra, on the other hand, believes that because SCUF and STFC are in people-intensive businesses, the changed operating environment may be unsettling, at least in the early years, for a segment of employees, and thus may impede the company’s performance.

At around 2.52 PM, Shriram Finance was trading at Rs1,330.10, down by 1.31% against the previous close of Rs1,349.65 on NSE. The counter hit an intraday high and low of Rs1,352.90 and Rs1,317.85 respectively.

For feedback and suggestions, write to us at [e-mail]