Fitch rates India Infrastructure bonds AAA(ind)

Fitch Ratings said it assigned India Infrastructure Finance Co. Ltd.'s Rs.100 billion unsecured redeemable non-convertible tax-free rupee bonds (series I 2008-09) an expected rating of AAA(ind)(SO), and affirmed its Rs.2 billion unsecured redeemable non-convertible taxable rupee bonds (series I 2007-08) at AAA(ind)(SO). Fitch also said it assigned an expected AAA(ind)(SO) rating to its Rs.4 billion unsecured redeemable non-convertible taxable rupee bonds (series I and II 2008-09).

The ratings are based on the unconditional and irrevocable guarantee of the government of India, which holds 100% of the company's equity, Fitch said.

India has been extending budgetary support to help the company effectively discharge its role of supplementing infrastructure loans provided by banks and other institutions, the agency said.

This is aimed at streamlining the flow of bank loans to infrastructure projects, which are facing financing problems in the challenging funding environment, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.