L&T Finance Limited — Credit Ratings, 18-07-2025: Credit Rating- New

S&P Global Ratings and Fitch Ratings have assigned first-time 'BBB-' long-term credit ratings to L&T Finance, with S&P giving a 'Positive' outlook and Fitch a 'Stable' one. These ratings largely reflect strong support from the parent L&T Group, which holds a significant ~66% stake, and L&T Finance's increasing earnings contribution. The rating agencies highlighted the company's strategic shift to lower-risk, secured retail lending, now comprising 97% of its loan book. As of March 2025, S&P noted a loan book of **₹97.76 crore**, while Fitch cited approximately **$11 billion**. Improving asset quality, with the non-performing loan ratio at 3.3% in FY25, and healthy capital buffers also supported the ratings. This initial strong rating should boost investor confidence and potentially lead to more favorable borrowing terms, enhancing strategic flexibility.