Fitch affirms Indian Railway Finance Corp at BBB-minus
May 27, 2021
Hong Kong, May 27 : Fitch Ratings has affirmed Indian Railway Finance Corporation Ltd's (IRFC's) long-term foreign and local currency issuer default ratings at BBB-minus.
The outlook is negative in line with that of the sovereign, it said.
Fitch also affirmed IRFC's USD4 billion global medium-term note programme and outstanding senior unsecured note rating at BBB-minus.
The affirmation reflects Fitch's view that IRFC remains an important government-related entity.
The assessment has considered the company's strategic role in supporting the railway sector and a robust framework for state support. Hence, Fitch said the government has a very strong incentive to provide extraordinary support to IRFC if needed.
IRFC is a non-banking financial company that acts as the dedicated lending arm of the Ministry of Railways.
The company finances the acquisition of rolling stock assets, leasing of railway infrastructure assets and lending to other entities under the Ministry of Railways.
IRFC's profit before tax rose by 15.6 per cent year-on-year in 9M FY20, driven by an increase in its lease assets to Rs 2.96 lakh crore consisting of 53.61 per cent in lease receivables from rolling stock assets and 44.28 per cent from railway infrastructure assets.
