Rating agency, Moody’s Investors Service has affirmed the foreign currency long-term issuer ratings of Power Finance Corporation (PFC) at Baa3. The rating outlook is stable.
The company’s foreign currency issuer rating of Baa3 is in line with the Baa3 rating for the Government of India. Its rating is underpinned by its linkage with the government, given the latter's ownership, as well as the strategic role it plays in the government's plans for the power sector.
PFC operates in a highly regulated industry, where the policies and the level of support provided by the government have positive implications for its cost of capital, financial strength of its borrowers, business growth and overall profitability. It is classified as a public-sector undertaking; the government owns 73.7% of the entity and has a representation on its board of directors.
