Moody’s affirms PFC’s & REC’s Baa3 ratings, sees asset quality improving

Rating agency Moody’s has affirmed “Baa3” local and foreign currency issuer ratings for Power Finance Corporation Ltd (PFC) and REC Ltd (REC), expecting a further decline in the problem loans ratio as the state-owned firms resolve legacy assets. “Baa3” is an investment grade rating with moderate credit risk.

Moody’s maintained a stable outlook on the ratings, reflecting its expectation that the companies’ credit fundamentals will remain stable and they will continue receiving strong support from the government.