Crisil pares outlook on Sundaram Finance

Crisil has cut the outlook on the long-term debt and fixed deposit programmes of Sundaram Finance and Sundaram Home Finance to negative from stable.

The outlook revision for Sundaram Finance is driven by Crisil's belief that limited business and income diversification will strain its risk profile over a longer time horizon and stretch it at the current rating level. The rating agency said that it expects the vehicle financing market to remain intensely competitive with new entrants likely to add to pricing and yield pressures from time to time.

Crisil has revised outlook to negative on Rs 100 crore tier-II bonds, Rs 1500 crore NCDs, and fixed deposit programme. However, it has reaffirmed P+1 rating for Rs 1,000 crore short-term debt programme of Sundaram Finance.