SHRIRAMFIN

On January 9, 2026, Moody's Investors Service affirmed Shriram Finance Limited's (SFL) Ba1 long-term corporate family rating (CFR) and upgraded its outlook from stable to positive. This decision follows SFL's announcement on December 19, 2025, regarding MUFG Bank's plan to acquire a 20% stake in the company through a preferential allotment of shares worth INR 396 billion ($4.4 billion), subject to regulatory approvals. The investment is expected to strengthen SFL's capital base, improve funding diversity, and enhance risk management practices. Moody's anticipates improvements in SFL's capitalization, profitability, funding access, and asset quality over the next 12–18 months, with a potential rating upgrade if the company achieves sustained financial improvements. However, a downgrade could occur if asset quality deteriorates or capitalization weakens significantly.