Fitch rates Infrastructure Development debt AAA(ind)

Fitch Ratings said it assigned India-based Infrastructure Development Finance Co. Ltd. an AAA(ind) national long-term issuer rating and an AAA(ind) rating to the company's Rs. 2 billion long-term debt program. The outlook is stable.

Fitch said the company's ratings reflect its strong financials and capitalization, robust risk practices, professional management and support from the Indian government, the company's largest shareholder.

The company began operations with a large capital base of Rs. 10 billion, and in spite of a 57% compounded annual growth in loans between fiscal years 2001 and 2005, its capitalization has been high, with Tier 1 capital at 20.1% of risk-weighted assets at fiscal year 2005. The company's initial public offering in July 2005 further shored up the capital base and while it plans to increase its leverage, the company expects to maintain its Tier 1 ratio at a minimum of 12%.

Fitch noted that the company's liquidity and funding profile are comfortable; the company borrows long-term funds at extremely competitive rates in the debt capital markets and is diversifying its borrowing by tapping foreign currency funds.

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