State-run Power Finance Corporation (PFC) would become more stringent in evaluating the creditworthiness of state-owned power distribution companies (discoms) as the sector-specific lender would now have to become more cautious about maintaining its capital levels after the Rs 14,500 crore takeover of the Union government’s stake in REC.
“We would now be monitoring the payment discipline (of the state-owned entities) more strictly,” PFC chairman and MD Rajeev Sharma said on Thursday, while speaking to the media about the acquisition. Global rating agency Moody’s warned on Wednesday that PFC’s rating could be downgraded if the financial strength of the state-run power utilities deteriorates significantly.
