Fitch rates Power Finance BBB-

Fitch Ratings said it affirmed Power Finance Corp. Ltd.'s long-term foreign-currency issuer default rating at BBB-, national long-term rating at AAA(ind) and national short-term rating at F1+(ind).

The outlook is stable.

The agency also said it assigned to Power Finance a BBB- senior unsecured rating.

The ratings reflect the company's strong operational and strategic ties with the government of India, which has 73.7% ownership, Fitch said.

The company plays an important role in developing and financing power sector utilities in India, the agency said.

Fitch noted that the government continues to provide indirect assistance to Power Finance by allowing it to raise low-cost funds through tax-concession bonds.

But the company has not received any direct and tangible financial support from India in the last five years, the agency said, although the government had in the past injected equity and guaranteed a small portion of its foreign-currency debt.

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