India Ratings and Research (Ind-Ra) has affirmed Shriram Housing Finance's (SHFL) Rs 1 billion non-convertible debentures (NCDs) programme at 'IND AA' with a stable outlook. The agency has also affirmed the company's Rs 5 billion (increased from Rs 2 billion) long-term bank loans at 'IND AA' with a stable outlook.

Of the Rs 1 billion NCD rated last year, Rs 500 million was outstanding and Rs 500 million was surrendered. The limits have since been enhanced by an additional Rs 500 million.

SHFL's ratings are driven by Ind-Ra's expectations of SHFL receiving continued support from its parent Shriram City Union Finance (SCUF; 'IND AA'/Stable).

SCUF has a 77.25% shareholding in SHFL and is likely to remain the single largest shareholder as well as to retain management control in the foreseeable future. Three of six members on SHFL’s board are representatives of SCUF.

Ind-Ra believes SHFL is key to SCUF's strategy in the underpenetrated credit segments, and the parent will continue to monitor SHFL's business and funding strategy.