Global rating agency Moody’s Investors Service on Wednesday said it has retained the previous stable outlook on Power Finance CorporationNSE -0.84 % (PFC) and REC Limited, as it expects quick closure of a deal between the two firms and resolution of a chunk of their bad loans. Borrowing programmes of the two firms were put under watch by rating firms post announcement of the acquisition.
Power Finance Corp last week announced a deal value of Rs 14,500 crore to acquire government’s stake in REC. The rating could improve if there is a substantial improvement in the companies’ capital and liquidity. However, the two organisations face downgrade risk there is a substantial improvement deteriorating financial position of state-run power utilities, a statement issued by the credit rating firm said.
