Moody's Upgrades Shriram Finance Outlook to Positive, Affirms Ba1 Rating

• Moody's Ratings revised Shriram Finance Limited’s (SFL) outlook from stable to positive, affirming its Ba1 long-term corporate family rating.
• The upgrade follows MUFG Bank's plan to acquire a 20% stake in SFL for ₹4.4 billion ($296 million), subject to regulatory approvals.
• Moody's expects the investment to strengthen SFL's capital base, provide access to global funding, and improve funding diversity and risk management.
• SFL's capitalisation is projected to materially improve, leading to higher profitability due to lower cost of funds and enhanced funding access.
• Asset quality is expected to remain stable over the next 12-18 months, supported by strong lending practices and a stable macroeconomic environment.

Why It Matters: Moody's upgraded Shriram Finance's outlook to positive, citing MUFG Bank's investment and expected financial strengthening.