Fitch rates BBB-minus EUR green bond proposed by Power Finance Corporation
Fitch Ratings has assigned the proposed Regulation S Euro Senior Unsecured Green Bond by Power Finance Corporation (PFC) a rating of BBB-minus.
The proposed bond will be issued from PFC’s existing global medium-term note program. The net proceeds of the bond will be lent to eligible green projects in accordance with the company’s green bond framework.
The size of the program was increased to $8 billion in August from $5 billion previously. The increase did not affect the program’s BBB-minus rating, which was last confirmed on May 26.
Fitch stated that the bond’s program and rating is aligned with PFC’s issuer default rating because the bond will constitute a direct, unconditional, unsubordinated and unsecured obligation of PFC and will rank pari passu with all other outstanding, present and future unsecured and unsubordinated obligations of the company. .
Fitch classifies PFC as a government-related entity under its government-related entity rating criteria with an overall high support score of 50.
He said PFC has strong ties to the state in light of its strategic role in supporting India’s power sector and the government’s incentive to provide extraordinary support to PFC when needed.
The company’s issuer default rating is matched to that of the Indian sovereign based on the government-related entity rating and independent of Fitch’s assessment of PFC’s stand-alone credit profile.
PFC was established in 1986 as a non-banking financial company. It is registered with the Reserve Bank of India and is under the administrative control of the Ministry of Energy.
PFC is responsible for lending to the power sector, primarily to public sector borrowers.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)