Global rating agency Fitch on Monday assigned the 'BB(EXP)' rating to Shriram Finance Limited's proposed U.S. dollar-denominated senior secured bonds.
'BB(EXP)' rating reflects that an issuer has some risk of default but is still a safer investment compared to others.
The final rating is subject to the receipt of final documentation conforming to information already received, Fitch Ratings said in a statement.
Shriram Finance will issue the proposed bonds in the international market under the Reserve Bank of India's external commercial borrowing framework.
The company will issue proposed bonds under the $3.5 billion global medium-term-note programme, which was updated on Dec. 29, 2023.
The proposed bonds will carry a fixed-rate coupon payable semi-annually and secured by a fixed charge over specified accounts receivable in line with the company's domestic secured bonds.
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