 "Moody’s Investors Service")
Global rating agency Moody’s on Thursday said that State-owned Power Finance Corporation’s (PFC) move to acquire government holding (52.6 per cent) in REC Ltd is credit negative for PFC as it will weaken its capital adequacy ratios.
Agency has placed the Baa3 issuer ratings as well as standalone credit profile of both PFC and REC under review for downgrade.
On December 6, the government of India (Baa2 stable) gave an 'in principle' approval to PFC to acquire government's entire 52.6% stake in REC. Upon completion of the transaction REC will become a subsidiary of PFC.
PFC is headquartered in New
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