Shriram Finance Rating Upgrade by Fitch to BB+ (Stable)
Why in the news
Fitch Ratings lifted the credit rating of Shriram Finance Ltd (SFL) by one notch, citing steady gains in its operations and finances.
Key facts
- Agency: Fitch Ratings; company: Shriram Finance Ltd (SFL).
- Long-term foreign-currency and local-currency Issuer Default Ratings (IDRs) moved from BB to BB+.
- Outlook assigned: Stable.
- The new level sits one notch below investment grade and is still speculative.
Rating snapshot
| Rating | Earlier | Now |
|---|---|---|
| Long-Term Foreign-Currency IDR | BB | BB+ (Stable) |
| Long-Term Local-Currency IDR | BB | BB+ (Stable) |
Reasons for the upgrade
- Better funding diversity.
- Stronger risk management.
- Improved portfolio quality.
- Higher profitability.
Exam angle
- Rating agency: Fitch Ratings.
- Term: Issuer Default Rating (IDR) with a Stable outlook.
- BB+ is speculative grade, one step below investment grade.