S&P reaffirms Power Finance

Standard & Poor's said it reaffirmed its BB+ foreign currency debt rating on Power Finance Corp. Ltd. (foreign currency BB+/positive/NR, local currency BB+/positive).

The outlook is positive.

"The ratings on PFC are supported by strong government support, good capitalization and profitability," said S&P credit analyst Sani Hamid. PFC's rating derives moderate support from its sole owner, the government of India (foreign currency BB+/positive/B, local currency BB+/positive/B), because of its role as the main government agency for financing the electricity sector.

Given the economic and political importance of the sector and Power Finance's critical role, S&P said it believes the Indian government is likely to provide funding support to PFC should it encounter difficulty in servicing its debt obligations.

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