India Ratings and Research (Ind-Ra) has assigned Shriram Transport Finance Company (STFC) additional proposed Rs 40 billion non-convertible debentures (NCDs) an 'AA+' rating. The outlook is stable.

The ratings are factors in STFC’s dominance in the Indian used commercial vehicle (CV) financing market with limited meaningful organised competition in its niche segment.

The company is focusing on buckets of median- to above-average yields, which is likely to reduce volatility in credit costs. The ratings factor in the company's healthy capitalisation, reasonable operating metrics and average liquidity.

The ratings however also factor in the company's largely institutional funding, though its non-institutional funding has increased and it now has a sizeable proportion of retail deposits.

Shares of the company declined Rs 44.25, or 3.45%, to settle at  Rs 1,239.05.  The total volume of shares traded  was  52,423 at the BSE (Wednesday).