Power Finance Corporation Ltd.

CRISIL has assigned its ‘AAA/Stable’ rating to Power Finance Corporation’s (PFC’s) long-term borrowing programme, and has reaffirmed its ratings on the company’s other debt programmes and bank facilities, at ‘AAA/ Stable/CRISIL A1+’.  The ratings continue to reflect the company’s strategic importance to the Government of India (GoI) because of the key role that the company plays in financing the Indian power sector, and its majority ownership by GoI.

CRISIL has also factored in PFC’s comfortable capitalisation, strong market position, and adequate resource profile. These rating strengths are partially offset by the inherent vulnerability in PFC’s asset quality because of the weak financial profiles of the company’s primary borrowers (state power utilities [SPUs]), and sectoral and key account concentration.

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.