Credit Rating- Others

14th October, 2026 To, To, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, 21st Floor, Dalal Street, Bandra (East), Mumbai – 400051. Mumbai – 400001. NSE Symbol: SBFC BSE Equity Scrip Code: 543959 Dear Sir/Madam, Sub: Disclosure of Credit Rating under Regulations 30, 51 and 55 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Master Circular dated 11th July, 2025 Pursuant to the aforementioned regulations, please find below the details of the credit rating(s) provided by India Ratings & Research Private Limited for pass-through certificates (PTCs) issued by Prime Trust LAP Aug 22 [SPV under ABS transaction] originated by SBFC Finance Limited backed by a pool of asset-backed securities: Name of the trust Name of the Credit Instrument Credit Rating Rating Action Rating Agency Prime Trust LAP Aug 22 India Ratings & Series A1 IND AA(SO)/Stable Affirmed Research Private securitisation Limited notes Series A2 IND BBB-(SO)/Stable Affirmed securitisation notes The rating letter provided by India Ratings & Research Private Limited was received by the Company on 14th October, 2026 at 12.26 PM (IST) which has been enclosed herewith. This information is also being uploaded on the website of the Company at: https://www.sbfc.com/investors. You are requested to take the same on record. Thanking you, Yours faithfully, For SBFC Finance Limited Namrata Sajnani Company Secretary & Chief Compliance Officer Encl : As above SBFC Finance Limited Registered Office: Unit No. 103, 1st Floor, C&B Square, Sangam Complex, Andheri Kurla Road, Village Chakala, Andheri (East) Mumbai - 400 059 T.: +91-22-67875300 • F : +91-22-67875334 • www.SBFC.com • complianceofficer@sbfc.com CIN No: L67190MH2008PLC178270 India Ratings Affirms Prime Trust LAP Aug 22’s SNs (Originated by SBFC Finance Limited) Oct 14, 2026 | Prime Trust LAP Aug 22 | Securitisation India Ratings and Research (Ind-Ra) has affirmed Prime Trust LAP Aug 22’s (an asset-backed securitisation transaction) securitisation notes (SNs) as follows: Details of Instruments Coupon Size of Rating Assigned Instrument Regulator of Date of Maturity Rating Rate Issue (INR along with Description Instrument Issuance Date* Action (%)# million) Watch/Outlook Series A1 RBI 7 September 12M 15 June 309.09 IND AA(SO)/Stable Affirmed securitisation 2022 Axis- 2041 notes MCLR Rate Series A2 RBI 7 September - 15 June 86 IND BBB- Affirmed securitisation 2022 2041 (SO)/Stable notes #As of the September 2026 payout date, the benchmark rate was 8.75%. The benchmark rate shall be reset on an annual basis, and the revised benchmark rate shall be applicable from the succeeding day of such a change. *Maturity date as per the September 2026 payout date. Analytical Approach As part of its analysis, Ind-Ra considers the historical data of the originator’s portfolio to determine the base values of key variables that would influence the level of expected losses in this transaction. The agency also studies the performance of market peers operating in similar segments. The base values of the default rate, recovery rate, time to recovery, collection efficiency, prepayment rate, and pool yield are stressed to assess whether the level of credit enhancement (CE) is sufficient for the rating levels. Ind-Ra also stresses the above variables for the rating level as per its Asset-Backed Securitisations Rating Criteria. Based on the rating level, the agency also makes an adjustment for the borrowers carrying the highest interest rate loans, assuming they will either prepay or default. Based on the above assumptions, Ind-Ra builds a pool cash flow model also considering the transaction structure. Detailed Rationale of the Rating Action The micro and small enterprise-loan against property (LAP) pool assigned to the trust has been originated by SBFC Finance Limited (SBFC; debt rated at ‘IND AA-’/Positive; originator or seller and servicer). The ratings factor in the originator’s servicing and collection capabilities, the transaction structure, and the availability of CE. Quality of Asset Pool and Strength of Cash Flows: As per the details provided by the originator to Ind-Ra, the collateral pool assigned to the trust at par had an aggregate principal outstanding (POS) balance (including principal overdues) of INR395 million as on the payout date of 15 September 2026. As on the given payout date, the 479-loan pool had a weighted average (WA) seasoning of 71 months. The pool is amortised by 65.56%, implying a reasonable repayment track record of the underlying borrowers. The pool had an average outstanding loan balance of INR824,626 and a WA internal rate of return of 15.9%. The agency saw a cumulative prepayment of 45.36%. The loans delinquent by over 90+ days past due were 1.94% of the original principal outstanding (POS) as of the collection month of August 2026. The cumulative collection efficiency was 98.3%. Payment Structure: The rating of Series A1 SNs addresses the timely payment of interest and principal to the SN investors on the scheduled payout dates, and the rating of Series A2 SNs addresses the ultimate payment of principal to the SN investors on the scheduled payout dates. List of Key Rating Drivers Strengths Track record, underwriting, and collection capabilities of originator; quality and experience of servicer Adequacy of CEs Provision for appointment of back-up servicer, if any Repayment track record of borrowers in pool Weaknesses Geographical concentration in pool Detailed Description of Key Rating Drivers Track Record, Underwriting, and Collection Capabilities of Originator; Quality and Experience of Servicer: The agency is of the opinion that the issuer’s origination and servicing capabilities are of acceptable standards. The loan origination process is conducted by a sales manager, who is responsible for tele-calling, pool calling, conducting workshops, generating leads through analytical data, and pamphlet distribution. The origination practices include a personal discussion with the borrower, document verification, collateral characteristics, field visit, and income assessment. There is a collections team that is responsible for efficiently collecting the dues from the borrowers. Tele-calling is used at the starting stages of delinquency, followed by a field visit. Adequacy of CEs: The transaction benefits from the available internal and external CEs. The internal CE arises in the form of excess interest spread (EIS) of 53.9% of the POS including overdues. Moreover, the internal CE is in the form of subordination of Series A2 SNs of 21.8% of the POS including overdues, which has increased from 7.5% of the original POS. The total available external CE in the transaction was 5.0% of the initial POS at the issuance, which has now been built to 14.6%. The CE is provided in the form of a fixed deposit in the name of the originator, with a lien marked to the trustee. It is held with Axis Bank Limited (‘IND AAA’/Stable). Provision for Appointment of Back-up Servicer, If Any: During servicer default or other events as defined in the documents, the trustee, on behalf of the majority investors, shall be entitled to terminate the services of the servicer and appoint an alternative/successor servicer in the manner as specified under the transaction documents. Repayment Track Record of Borrowers in Pool: The pool had a WA seasoning of 71 months as on the payout date, implying reasonable repayment track records of the pool borrowers. Geographical Concentration in Pool: The top three states (Karnataka, Maharashtra, and Delhi) contributed around 54.6% to the total pool as of the collection month of August 2026. Furthermore, the asset quality in this segment is more vulnerable to economic downturns compared to the secured asset class. Key Assumptions Ind-Ra has derived a base-case gross default rate of 7%-8% for the life of t [Showing first 8,000 characters — download PDF for full document]