S&P upgrades Shriram Finance rating after deal with MUFG Bank

S&P GLOBAL RATINGS on Thursday upgraded Shriram Finance’s long-term issuer credit rating to ‘BBB-’ from ‘BB+’ and its short-term rating to‘A-3’ from ‘B’ citing a significant strengthening of the company’s capital position following a proposed investment by MUFG Bank.

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The outlook on the long-term rating is stable, it said in a release.

“We upgraded Shriram Finance on the expectation of stronger capitalisation. The capital infusion from MUFG Bank (A/Stable/A-1) will primarily drive this strengthening,” S&P Global said.