Credit rating agency, CARE has assigned ‘AA’ rating to the Non-convertible Debentures (NCD) issue of Shriram City Union Finance (SCUFL) for Rs 750.00 crore. The agency has also revised the assigned ‘AA-’ rating to ‘AA’ for NCD issue of the company for Rs 275.00 crore (outstanding amount was Rs 225 crore as on July 14, 2011).
Further, the agency has also revised the assigned ‘AA-‘ rating to ‘AA’ for Fixed Deposits (FD) of the company amounting Rs 10.00 crore. The agency has also reaffirmed the assigned ‘A1+’ rating to the Short-term Debt Programme of SCUFL for RS 375.00 crore (outstanding amount was Rs 375 crore as on July 14, 2011).
SCUFL’s ability to maintain asset quality and raise capital to sustain growth are the key rating sensitivities. The rating is however constrained on account of the regional concentration of the company’s business and the evolving nature of the management information system.
Shriram City Union Finance, part of Chennai-based Shriram group, has a comprehensive range of financing two wheelers, three wheelers, four wheeler finance, personal loans and loan against gold. With over 1000 business outlets across the country, the company enjoys a high credit rating.
