Credit rating agency, CRISIL has assigned ‘AAA/Stable’ rating to Rural Electrification Corporation’s (REC) Rs 34,500 crore long-term borrowing programme and ‘A1+’ rating to REC’s Rs 2,500 crore short-term debt programme. Further, the rating agency has reaffirmed ratings on the other debt programmes at ‘AAA/Stable/ A1+’.
The ratings continue to reflect the company’s strategic importance to, and majority ownership by, the Government of India (GoI) because of its key role in financing the Indian power sector. The ratings also continue to reflect the company’s sound resource profile, and comfortable capitalisation and profitability.
REC is engaged in providing financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects as are sponsored by them.
