Shriram Finance Ltd.

Credit rating agency, ICRA has reaffirmed the MAA+ rating with Stable outlook to the fixed deposit Programme of Shriram Transport Finance Company (STFC).

The rating takes into account the company’s dominant position and established franchise in the Commercial Vehicle (CV) market and its ability of maintaining a favorable earning profile by managing its asset quality while expanding in perceived riskier but higher yielding customer segments.

Recently, CARE assigned ‘CARE AA+’ rating to the proposed secured non convertible debenture (NCD) issue of the company for an aggregate amount of Rs 1,000 crore with maturity of 3-7 years.

Shriram Transport Finance Company is the largest player in commercial vehicle finance. It lends finance for pre-owned trucks to new trucks. The company posted a net profit of Rs 340.62 crore for the quarter ended March 31, 2011 as compared to Rs 264.42 crore for the quarter ended March 31, 2010, up 29%. Total income of the company increased from Rs 1228.20 crore for the quarter ended March 31, 2010 to Rs 1387.47 crore for the quarter ended March 31, 2011.