Bajaj Finance Ltd. (BFL), the most diversified non-bank in India, has been assigned a long-term issuer credit rating of ’BBB' - with a stable outlook and ‘A-3' short-term issuer credit rating by S&P Global Ratings on Jan 31, 2019. The ‘BBB' - rating is equivalent to India’s sovereign rating assigned by S&P Global Ratings.
According to S&P Global Ratings, BFL's comfortable capital levels and its strong market position drive the ratings on the company. BFL strong capital position is supported by high margins, low dividend payouts, and periodic capital infusions to support rapid growth. BFL has a strong market position in consumer durables and two- and three-wheeler financing. Tempering these strengths are its relatively high credit costs and reliance on wholesale borrowing.
S&P Global Ratings also says that “the stable outlook on BFL reflects our view that the company will maintain its superior financial performance despite some deterioration over the next 12-18 months. We also expect it to continue to gain market share without compromising its underwriting practices.”
Commenting on the report, Rajeev Jain, Managing Director, Bajaj Finance Ltd.said, “S&P Global ratings assigning its ‘BBB-' long-term issuer credit rating to Bajaj Finance Ltd. is indeed a very proud moment for us as a company. This will help us further diversify and strengthen our liability profile. We are committed to providing world-class financial solutions along with seamless experience to the consumers thereby creating all-around incremental value to all our stakeholders.”