Credit rating agency, Fitch Ratings has affirmed India-based Power Finance Corporation’s (PFC) long-term Foreign Currency Issuer Default Rating (IDR) at ‘BBB-’ and its national long-term rating at ‘AAA (ind)’ with stable outlook. Further, the company’s National Short-term rating has also been affirmed at ‘F1+ (ind)’. At the same time, Fitch has assigned PFC a senior unsecured rating of ‘BBB-’.
The company’s ratings reflect its strong operational and strategic ties with the Government of India (GoI, 73.7% ownership). The company plays an important role in developing and financing power sector utilities in India. Fitch notes that GoI continues to provide indirect assistance to PFC by allowing it to raise low-cost funds through tax-concession bonds.
PFC provides large range of financial products and services like project term loan, lease financing, direct discounting of bills, short term loan, and consultancy services for various power projects in generation, transmission, distribution sector as well as for renovation and modernization of existing power projects.
