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Shriram Finance Upgraded to IG-Status of BBB- by Fitch
April 15, 2026
Shriram Finance was upgraded to IG-status of BBB- from HY-status of BB+ by Fitch, making it a rising star. The upgrade follows the completion of Mitsubishi UFJ Financial Group’s (MUFG) acquisition of a 20% strategic stake in Shriram Finance. The upgrade reflects improved prospects of external support from MUFG, whose stronger credit profile, long-term strategic intent, and governance involvement enhance Shriram’s overall creditworthiness. Fitch views India as a key growth market for MUFG, with Shriram positioned as a core vehicle given its strong franchise in SME and retail lending, particularly for used commercial vehicles. The partnership is expected to deliver benefits over time, including product development, access to lower-cost funding, and technology and operational enhancements, although these will materialize gradually. According to Fitch, Shriram’s credit profile remains among the strongest in the Indian NBFC sector, supported by diversified funding, improving asset quality, and consistent profitability. MUFG’s INR 396bn ($4.4bn) equity injection has broadened Shriram’s capital base, with an end-December 2025 debt-to-tangible equity ratio falling to 2.5x from 4.2x pre-infusion.
Shriram’s 6.625% 2027s were trading stable at 101.6, yielding 4.97%.
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