CRISIL has assigned its 'AA/Stable' rating to the Rs 10 billion non-convertible debenture issue of Shriram Transport Finance Company (STFCL), and has reaffirmed its ratings on the company's bank facilities and other debt instruments at 'AA/FAA+/Stable/A1+'.

The ratings continue to reflect STFCL's strong market position in the pre-owned commercial vehicle (CV) financing segment, healthy capitalisation, and comfortable earnings profile. These rating strengths are partially offset by STFCL's average, though improving, resource profile, and limited diversity in its business and revenue profiles.

CRISIL believes that STFCL will maintain its market position in the pre-owned CV financing segment, along with its healthy capitalisation and comfortable earnings, over the medium term. The outlook may be revised to 'Positive' if the company's competitive position and resource profile improve significantly. Conversely, the outlook may be revised to 'Negative' if STFCL's asset quality and earnings weaken significantly.

Shares of the company gained Rs 15.2, or 1.61%, to trade at Rs 956.50. The total volume of shares traded was 11,721 at the BSE (12.51 p.m., Tuesday).