Sara Patel
TLDR:
– Global rating agency Fitch has assigned a ‘BB(EXP)’ rating to Shriram Finance Limited’s proposed U.S. dollar-denominated senior secured bonds.
– The final rating is subject to the receipt of final documentation conforming to information already received.
Global rating agency Fitch has assigned a ‘BB(EXP)’ rating to Shriram Finance Limited’s proposed U.S. dollar-denominated senior secured bonds. This rating indicates that the issuer has some risk of default but is still considered a safer investment compared to others. However, the final rating is subject to the receipt of final documentation confirming the information already received.
Shriram Finance plans to issue the proposed bonds in the international market under the Reserve Bank of India’s external commercial borrowing framework. The company will issue the proposed bonds under its $3.5 billion global medium-term-note program that was updated on December 29, 2023. The bonds will have a fixed-rate coupon payable semi-annually and will be secured by a fixed charge over specified accounts receivable, similar to the company’s domestic secured bonds.
