Shriram Finance Limited — Credit Ratings, 16-05-2025: Credit Rating- New

Japan Credit Rating Agency, Ltd. has assigned Shriram Finance Limited a first-time foreign currency long-term issuer rating of BBB+ with a stable outlook. This rating reflects Shriram Finance’s strong market position as the second-largest non-mortgage retail NBFC, supported by a diversified and secured loan portfolio focused on used commercial vehicle financing. Key strengths include a healthy net interest margin of 8.7%, a solid capital adequacy ratio of 21%, and strong liquidity coverage at 265%. Although asset quality remains somewhat sensitive to macroeconomic shifts, improved credit metrics and consistent earnings growth mitigate risks. The stable rating is expected to sustain investor confidence and help maintain competitive borrowing costs.