Shriram Finance Limited — Credit Ratings, 13-05-2025: Credit Rating- Revision

Fitch Ratings has upgraded Shriram Finance Limited’s Long-Term Foreign- and Local-Currency Issuer Default Ratings to ‘BB+’ from ‘BB’, maintaining a stable outlook. The upgrade reflects stronger credit metrics driven by improved funding diversity, enhanced risk management, and better portfolio quality post-merger with Shriram City Union Finance. Asset quality has improved, with the non-performing loan ratio down to 4.6% and provision coverage rising to 123%. Enhanced liquidity through diversified funding and steady access to domestic and offshore debt underpins this positive shift. This upgrade should reduce Shriram Finance’s borrowing costs and strengthen investor confidence in its resilient financial profile.