India Ratings and Research (Ind-Ra) has assigned
Shriram Transport Finance Company Limited with provisional IND AAA with stable outlook rating for Structured Non-Convertible Debentures (NCDs) proposed to be issued by the company up to Rs4000cr.
The final rating will be assigned following the issuance and the receipt of final executed transaction documentation, conforming to the information already received by Ind-Ra.
“The NCDs are structured as dual recourse bonds with recourse to STFC and to a guarantee backed by identified pool of loans originated by STFC. Hence, the rating of the NCDs reflects the credit worthiness of STFC, the credit quality of the underlying pool, and a fixed deposit to ensure payment continuity.
The rating addresses timely payment of interest and ultimate payment of principal by the final maturity date, in accordance with transaction documentation. The NCDs have an expected maturity date which is seven years from date of issuance (equal principal repayment in the fifth, sixth and seventh year) and post that a tail period of three years until final maturity,” company shared Ind-Ra rationale with the exchanges on Friday.
Shriram Transport Finance Company Ltd ended at Rs934.20 per piece up by Rs22.8 or 2.5% from its previous closing of Rs911.40 per piece on the BSE.