Moody's Assigns Investment Grade Baa3 Rating to Bajaj Finance Ltd

Global rating agency Moody's has awarded a Baa3 rating with a stable outlook to Bajaj Finance Ltd, recognizing it as an investment-grade entity. This rating reflects BFL's strong consumer base in India, diversified loan portfolio, competitive funding costs, and robust risk management strategies against economic shocks.

Global rating agency Moody's has announced a first-time investment-grade Baa3 rating for Bajaj Finance Ltd (BFL), emphasizing a stable outlook for the firm.

As India's largest retail-oriented non-banking financial company, BFL boasts a vast customer base and distribution network, contributing to this favorable rating. Its diversified loan book supports its risk-adjusted profitability, and its strong capitalization and competitive funding costs further solidify its standing, according to a statement from BFL citing Moody's report.

Bajaj Finance Ltd is expected to continue expanding its market share, with consolidated assets under management projected to reach Rs 3.5 trillion (approximately USD 42 billion) by June 2024. Despite challenges posed by sizable unsecured lending, BFL has implemented rigorous risk management processes to ensure robust returns.

(With inputs from agencies.)