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Shriram Finance Upgraded to IG-Status of BBB- by S&P
January 16, 2026
Shriram Finance was upgraded by a notch to IG-Status of BBB- from BB+ by S&P, making it a rising star. The upgrade follows acquisition of a 20% stake by MUFG Bank Ltd, resulting in a proposed equity investment of $4.4bn. The capital infusion materially strengthens Shriram Finance’s capitalization, with its risk-adjusted capital ratio expected to exceed 20% in FY 2027-28, compared with earlier expectations of around 14%. S&P also expects gradual improvements in profitability, supported by lower funding costs through MUFG’s association, while Shriram Finance’s business strategy, risk appetite, asset quality, and dividend policy are likely to remain largely unchanged. The outlook is stable, reflecting expectations of robust capitalization, sustained loan growth of 18-20% annually, and a strong franchise in vehicle financing across semi-urban and rural India.
Its dollar bonds traded stable with its 6.625% 2027s at 102.4, yielding 4.6%
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