New Delhi, May 10 (UNI) Shriram Finance Limited (SFL), a non-banking financial company (NBFC) on Sunday announced that Moody’s Ratings has upgraded the company’s long-term Corporate Family Rating (CFR) to investment grade “Baa3” from “Ba1” and revised the outlook to “Stable” from “Positive”, according to a company statement here.

A 'Baa3' rating is the lowest investment-grade level, which shows moderate credit risk, medium-grade quality, and potential vulnerability.

The upgradation reflects the strengthening of Shriram Finance’s credit profile following the strategic equity investment by MUFG Bank. This is also due to the company’s strong underlying franchise, diversified funding profile, improved financial flexibility, and prudent balance sheet management.

This upgradation follows a series of rating upgrades last month from CRISIL Ratings Limited, ICRA Limited, and India Ratings & Research.

Additionally, on April 14, Fitch Ratings upgraded SFL's Long-Term Foreign- and Local-Currency Issuer Default Ratings to BBB- (minus) from BB (positive), with a stable outlook, removing the company from Rating Watch Positive.

Moody’s noted that the acquisition of 20pc equity stake by MUFG Bank has strengthened the company’s credit profile, capital position, financial flexibility and access to domestic and international capital markets.

It also reinforced the company’s strong franchise, diversified funding profile, prudent balance sheet management, long-term governance, and risk management capabilities.

Shriram Finance Limited is the flagship company of the Shriram group, which has a significant presence in consumer finance, life insurance, general insurance, stock broking, and distribution businesses.

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