CRISIL has revised its rating outlook on the long-term debt instruments, bank facilities and fixed deposits of Shriram Transport Finance Company (STFCL) to 'Positive' from 'Stable', while reaffirming the ratings at 'AA/FAA+'. The rating on the company's short-term debt instruments and bank facilities has been reaffirmed at 'A1+'.

The ratings continue to reflect STFCL's healthy capitalisation, which provides a cushion against any asset-side risks, and its comfortable earnings profile. These rating strengths are partly offset by the company's average, though improving, resource profile.

CRISIL believes that STFCL will sustain its strong market position in the pre-owned CV financing segment, along with its healthy capitalisation and comfortable earnings profile, over the medium term. The ratings may be upgraded if there is a turnaround in the CV cycle which is expected to result in an improvement in STFCL's asset quality and profitability. Conversely, the outlook may be revised to 'Stable' if the company's asset quality does not improve significantly, adversely impacting its earnings profile.

Shares of the company declined Rs 14.45, or 1.57%, to settle at Rs 904.70. The total volume of shares traded was 8,317 at the BSE (Thursday).