Fitch Ratings places Shriram Finance on 'rtg watch positive' on MUFG Bk deal
This story was originally published at 22:01 IST on 21 January 2026
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--Fitch Ratings place Shriram Finance 'BB+' on rating watch positive
NEW DELHI – Fitch Ratings has placed Shriram Finance Ltd.'s long-term issuer default rating of "BB+" and short-term rating of "B" on "rating watch positive". This comes after Japan's MUFG Bank said it will invest over INR 396 billion in the company for a 20% stake.
"Fitch believes SFL's (Shriram Finance's) rating could benefit from a one-notch uplift to its Standalone Credit Profile (SCP), reflecting the strategic investment from a stronger long-term shareholder, in line with Fitch's criteria," the rating agency said. Fitch expects to resolve the rating watch once the transaction is complete, which is expected to happen in 2026. "The rating could stay at its present level or be upgraded upon the resolution of the RWP (rating watch positive)," it said.
S&P Global Ratings had on Jan. 15 raised its long-term credit rating on Shriram Finance to "BBB-" from "BB+" with a "stable" outlook, citing the capital infusion by MUFG Bank. On Jan. 9, Moody's Ratings had affirmed Shriram Finance's "Ba1" long-term corporate family rating and changed the outlook to "positive" from "stable".
Fitch has also placed the company's medium-term note programme and debt ratings on "rating watch positive". Fitch said Shriram Finance will generally align with MUFG Bank's strategic priorities and governance standards going ahead and benefit from modest funding support from the Japanese institution.
For the September quarter, Shriram Finance had posted a net profit of INR 23.07 billion, up 11% on year. Shares of the company Wednesday ended slightly lower at INR 986 on the National Stock Exchange. End
Reported by Shubham Rana
Edited by Rajeev Pai
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