Fitch affirms Sundaram Finance

Fitch Ratings said it affirmed Sundaram Finance Ltd.'s national long-term rating at AA+(ind) and national short-term rating at F1+(ind), along with its Rs. 22.5 billion loan-term bank loans, enhanced from Rs. 17.5 billion, at AA+(ind); Rs. 10 billion non-convertible debentures program at AA+(ind); Rs. 1.5 billion lower tier 2 bonds program at AA+(ind); and Rs. 6 billion short-term bank loans at F1+(ind).

The outlook is stable.

The ratings reflect the company's established franchise in the vehicle finance sector in India, its ability to manage the economic downturn well and its reasonable financial flexibility, Fitch said.

The ratings are constrained by the company's greater reliance on wholesale funding and relatively higher concentrations in India's vehicle finance sector.

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