Mumbai, Apr 13: CRISIL Ratings Limited, ICRA Limited, and India Ratings & Research have upgraded the long-term credit rating for Bank loan facilities, Non-Convertible Debentures, Subordinated Debt, and Fixed Deposit Programmes of Shriram Finance Limited (SFL), the flagship company of the Shriram Group and one of India’s leading non-banking financial companies, to AAA with a Stable outlook — the highest rating on each agency’s respective scale. These upgrades, effected on April 9 and April 10, 2026, also resolved the ratings from ‘Watch with Positive Implications’.
Powered by the MUFG Bank Partnership
The upgrades follow the completion of MUFG Bank Ltd.’s strategic investment in SFL on April 8, 2026, through which MUFG Bank acquired a 20% equity stake on a fully diluted basis, with a total investment of Rs. 39,618 crore. The agencies noted that the transaction has significantly strengthened SFL’s capital profile, with the Company’s networth surpassing Rs. 1 lakh crore post-transaction. The agencies also recognised that the association with the globally reputed long-term strategic investor -MUFG Bank, is expected to benefit SFL’s liability franchise through access to funds at lower cost and further diversify its borrowing profile from both domestic and global stakeholders. SFL is expected to leverage MUFG Bank’s experience across various facets including technology, risk management and governance. The ratings also factor in the company’s diversified portfolio and its long-demonstrated risk management capability across economic cycles while maintaining an adequate risk-return trade-off.
Comment from Umesh Revankar, Executive Vice Chairman, Shriram Finance Limited “The MUFG partnership has been a pivotal moment, and these rating upgrades are a reflection of that. For us, it translates directly into lower borrowing costs and a stronger ability to serve our customers. We are grateful to our investors, partners, and most importantly, our customers for their continued trust.”
Robust Fundamentals Recognised by the Rating Agencies
The Rating upgrade of AAA (stable) across all the Domestic Credit Rating Agencies anchors the highest level of Domestic creditworthiness marking a key inflection point in SFL’s credit journey. The upgrades reflect a structural strengthening of the credit profile, supported by SFL’s leadership position in the NBFC ecosystem, healthy earnings profile, improving asset quality along with credit costs and diversified resource base as key drivers underpinning the upgrade. The Stable outlook reflects the expectation that SFL will maintain strong capitalisation and a healthy earnings profile while scaling its operations and continues to focus on existing segments.
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