Credit rating to REC's debt prog highest
Global rating agency Fitch has assigned the highest credit rating of 'AAA(ind)' to the Rs 14,000 crore long term national debt programme of Rural Electrification Corporation (REC) for fiscal 2007-08.
By PTI |
NEW DELHI: Global rating agency Fitch has assigned the highest credit rating of 'AAA(ind)' to the Rs 14,000 crore long term national debt programme of Rural Electrification Corporation (REC) for fiscal 2007-08.
The ratings are based on Fitch's assessment of its strategic importance to the Government of India as REC is the nodal agency for funding rural electrification, which is important for the Centre, both socially and politically, Fitch said in a release here on Tuesday.
REC plans to raise equity capital in the current fiscal through its first public equity offering. The offering would bring down the government's stake in the company to about 80 percent. The move would, however, not affect the developmental role by the organisation, the release said.
REC is supported by the government in many ways, including by grants, interest subsidies, tax concessions and the government guarantees among other things, it said. The government has earlier supported the organisation through security injections also, it added.
The ratings are based on Fitch's assessment of its strategic importance to the Government of India as REC is the nodal agency for funding rural electrification, which is important for the Centre, both socially and politically, Fitch said in a release here on Tuesday.
REC plans to raise equity capital in the current fiscal through its first public equity offering. The offering would bring down the government's stake in the company to about 80 percent. The move would, however, not affect the developmental role by the organisation, the release said.
REC is supported by the government in many ways, including by grants, interest subsidies, tax concessions and the government guarantees among other things, it said. The government has earlier supported the organisation through security injections also, it added.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
