S&P rates Shriram Transport

S&P said it assigned a BB+ long-term issue rating to the Rs.6.5 billion senior secured bonds of Shriram Transport Finance Co. Ltd.

This rupee-denominated offshore bond is drawdown from the company's Rs.50 billion medium-term notes program.

The rating on the notes is equalized with the long-term issuer credit rating on the company, S&P said.

The notes are direct and unconditional obligations of Shriram Transport, the agency said.

They are secured and will rank equally, without any preference, among themselves and with all other outstanding secured and unsubordinated obligations of the issuer, the agency said.

In a stress scenario, S&P said it believes the company has sufficient buffer through its pre-provision profits and will aggressively provide for its non-performing loans to ensure it does not breach its covenants.

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