L&T Finance Limited has informed the Exchange about Credit Rating
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S&P Global Ratings upgraded L&T Finance Limited's credit rating on August 14, 2025, following a similar upgrade on India's sovereign rating. The long-term issuer credit rating moved up one notch from BBB-/Positive to BBB/Stable, and the short-term rating improved from A-3 to A-2. S&P also revised the company's standalone credit profile (SACP) upward from bb+ to bbb-, reflecting expectations of sustained strong capital levels with a RAC ratio of 15%-20% over the next two years (19.7% as of March 2025). The upgrade was driven by India's improving economic conditions, the company's shift toward more diversified retail lending, and benefits from the strong Larsen & Toubro group linkage. Capital and earnings assessment was raised from Strong to Very Strong, while the stable outlook reflects continued group support and market position.
This is a positive development for shareholders — a credit rating upgrade reduces borrowing costs, improves access to funding, and signals stronger financial health. It should support the stock's perception among institutional investors, though an upgrade beyond BBB is considered unlikely in the near term.