Moody's Upgrades Shriram Finance Rating to Ba1 on MUFG Bank Investment

• Moody's Ratings upgraded Shriram Finance's outlook from stable to positive and assigned a Ba1 long-term corporate family rating.
• The upgrade follows Shriram Finance's announcement that MUFG Bank plans to acquire a 20% stake for ₹440 crore via preferential allotment.
• This investment is expected to strengthen Shriram Finance's capital base, reduce funding costs, and improve profitability within 12-18 months.
• Shriram Finance's debt maturity coverage is projected to increase significantly, and asset quality is expected to remain stable.
• Shriram Finance shares have seen a 107.66% surge in one year, with analysts largely recommending a 'buy' rating.

Why It Matters: Moody's upgraded Shriram Finance's rating due to MUFG Bank's strategic investment, boosting its financial outlook.