CRISIL assigns ‘AAA’ rating to Rural Electrification’s lower Tier-II bond issue

Credit rating agency, CRISIL has assigned ‘AAA/Stable’ rating to Rural Electrification Corporation’s (REC’s) Rs 2500 crore lower Tier-II bond issue. The rating agency has also while reaffirmed the ratings on the company’s other debt programmes at ‘AAA/ 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 factor in 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.