Fitch affirms rating for 4 NBFCs, maintains stable outlook for all

The financial condition of Shriram Transport Finance, Muthoot Finance, Manappuram Finance and IIFL Finance is satisfactory, says agency

Fitch has affirmed its ratings for four non-banking finance companies--Shriram Transport Finance (‘BB’), Muthoot Finance (‘BB’), Manappuram Finance (‘BB-’) and IIFL Finance (‘B+’) --and maintained stable outlook.

Fitch said ‘BB’ for Shriram Transport Finance Ltd (STFC) reflects the firm’s established franchise in used commercial-vehicle (CV) financing, seasoned management team, established risk controls, and adequate capital and balance sheet buffers. The proposed merger of STFC with sister company Shriram City Union Finance Limited (SCUF) and parent Shriram Capital will not alter STFC's credit profile.

The combined entity's profitability is likely to improve with moderating asset-quality pressure, improving credit demand and cautious