Fitch has given a 'BBB-' rating to Power Finance Corporation, indicating a low risk of default on the debt.
"Fitch Ratings has affirmed India-based Power Finance Corporation Limited's (PFC) Long-Term Issuer Default Rating (IDR) at 'BBB-'. The Outlook is Stable," the rating agency said in a statement.
BBB ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments are considered adequate but adverse business or economic conditions are more likely to impair this capacity.
Fitch has also affirmed PFC's senior unsecured rating and USD 1 billion senior unsecured medium-term note programme at 'BBB-'.
Meanwhile, Fitch has withdrawn the 'BBB-(EXP)' rating on the proposed US dollar notes as the notes are no longer expected to proceed as previously envisaged, the statement said.
In another statement the rating agency said that it has affirmed Rural Electrification Corporation Ltd's (REC) "Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BBB-'. The Outlook is Stable.
