Shriram Finance Ltd.

Credit rating agency, CARE has assigned ‘CARE AA+’ rating to the proposed secured Non Convertible Debenture (NCD) issue for an aggregate amount of Rs 300 crore with maturity of 2 years of Shriram Transport Finance Company (STFCL). Instruments with this rating are considered to offer high safety for timely servicing of debt obligations and such instruments carry very low credit risk.

STFCL’s ability to maintain the asset quality of its portfolio, which has grown rapidly in recent years, timely infusion of additional capital to fuel growth and maintaining its spreads would remain key rating sensitivities.

STFCL is the flagship company of the Chennai based Shriram Group and is classified as deposit taking asset finance NBFC, with an objective to provide hire purchase and lease finance for the medium and heavy commercial vehicles to individual truck operators. It is the largest asset financing NBFC in India concentrated mainly in pre-owned vehicle financing business.