Mumbai, Feb. 26 -- The agency has also affirmed the company's short-term rating at 'IND A1+'.

India Ratings said that the ratings continue to reflect Mahindra & Mahindra's (M&M's) credit strength and considers MMFSL to be core to M&M's operations, as it supports a substantial proportion of the parent's business and shares its parent's brand name and has strong operational linkages with it.

The ratings also consider MMFSL's diversified funding profile and the competitive cost at which MMFSL raises funds.

MMFSL has demonstrated an improvement in its profitability in 9M FY25 due to better margin and an improvement in its asset quality as reflected in the reduced credit cost.

Although there was an increase in MMFSL's leverage due to growt...