Fitch affirms REC’s investment-grade rating
Fitch Ratings on Wednesday said that it has maintained REC’s (formerly Rural Electrification Corporation) investment-grade rating of ‘BBB-‘ as it believes the central government — which indirectly holds REC’s 52.63% stake via PFC — has a strong incentive to provide extraordinary support to the power sector lender.
The rating agency has also affirmed the negative outlook, in line with its similar outlook on the Indian sovereign. After Fitch had downgraded its outlook on India’s sovereign rating to negative from stable in June 2020, REC’s outlook was also subsequently revised to negative.
