Shriram Transport Fin tumbles 14% after S&P revises outlook to negative

The rating actions reflect the increasing risks that the Indian NBFCs face due to the challenging operating conditions stemming from the COVID-19 outbreak, the agency said.

Investors in Shriram Transport Finance Company (STFC) booked profit on the counter on Monday, dragging the stock 14 per cent lower to Rs 694 on the BSE, after S&P Global Ratings lowered the rating on the non-banking finance company (NBFC) to 'BB' from 'BB+' with negative outlook.

“The rating actions reflect the increasing risks that the Indian NBFCs face due to the challenging operating conditions stemming from the COVID-19 outbreak. The economic risk for Indian financial institutions is rising. The drastic efforts to curtail the spread of the coronavirus have resulted in a sudden stoppage in economic activity,” S&P Global