moody-s-assigns-baa3-rating-to-bajaj-finance

Global rating agency Moody's has assigned a first-time Baa3 rating indicating investment grade to Bajaj Finance Ltd (BFL) with stable outlook.

 

The company's ratings reflect its strong position as India's largest retail-focused NBFC, with a large customer base and distribution network. 

 

Its diverse loan portfolio supports high risk-adjusted profits, strong capital levels, and competitive funding costs, Bajaj Finance said, quoting Moody's statement.

 

Bajaj Finance Limited (BFL) is expected to continue gaining market share and further enhancing its substantial franchise, which had consolidated assets under management of ₹3.5 trillion (USD 42 billion) as of June 2024. 

 

The company’s strong loan diversification allows it to adjust loan growth in response to current asset quality trends in different segments. This diversification also aids in asset-liability management through a careful balance of short- and long-term loan assets. 

 

Although BFL's sizable unsecured lending exposes it to economic shocks, it said, the company has implemented various risk management strategies to ensure adequate risk-adjusted returns.