Fitch affirms IDFC

Fitch Ratings said it affirmed Infrastructure Development Finance Co. Ltd.'s long-term foreign-currency issuer default rating at BBB- with a negative outlook, its national long-term rating at Fitch AAA(ind) with a stable outlook and its Rs. 90 billion of non-convertible debentures, Rs. 15 billion of zero-coupon bonds and Rs. 79.29 billion of long-term infrastructure bonds at Fitch AAA(ind).

The agency said the affirmation reflects IDFC's healthy capitalization levels that are necessary for its business, its efficient risk management practices that have helped it manage its risks well so far and the benefits to its funding profile from its strong linkages with the government of India stemming from its important role in infrastructure project financing.

In Fitch's view, these factors help mitigate the high single name concentration in IDFC's loan portfolio.

The negative outlook on the long-term foreign-currency issuer default rating reflects the negative outlook on India's BBB- sovereign ratings, the agency said.

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