Fitch Ratings Enhances Shriram Finance Credit Rating

On Tuesday, Fitch Ratings announced an upgrade for Shriram Finance Ltd, reflecting the company's significant gains in its standalone profile over recent years. The upgrade acknowledges advancements in funding diversity, risk management, portfolio quality, and profitability.

Shriram Finance Ltd (SFL), an India-based financial institution, has had its Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs) elevated to 'BB+' from 'BB' with a stable outlook. This shift highlights SFL's successful performance since its 2022 merger with Shriram City Union Finance Ltd (SCUF).

Fitch noted the company's extensive experience in used commercial vehicle financing, supported by a seasoned management team and fortified risk controls. India's promising growth potential and diversified economy are expected to sustain non-bank financial institutions like SFL, bolstering business prospects and profitability.

(With inputs from agencies.)