S&P affirms IIFCL’s rating at ‘BBB-‘; keeps outlook stable

Get real time updates directly on you device, subscribe now.

S&P affirms IIFCL’s rating at ‘BBB-‘; keeps outlook stable

Global rating agency, S&P, on Monday affirmed India Infrastructure Finance’s (IIFCL) long-term issuer credit rating at ‘BBB-‘, on higher government support to the infrastructure financier in case of distress.

The rating agency also kept the state-run financial institution’s outlook as stable.

“It reflects our assessment of an almost certain likelihood of extraordinary government support for IIFCL in the event of financial distress,” the rating agency said in a note.

The rating on IIFCL in a sense, mirrors the sovereign credit rating on the country, it said.

IIFCL is a government-related entity acting under the directives of the ministry of finance (MoF) and the government.

The institution continues to play a critical role in the government’s economic development plans and policies over the next 24 months, the note said, adding “It will remain a key policy instrument to promote infrastructure financing.”

IIFCL’s activities signal the critical role the government sees itself as providing in helping to achieve faster financial closure for infrastructure projects, it said.

“In our view, the 2018-2019 budget announcement to expand the scope of projects that IIFCL can lend to further deepens the public policy role,” the rating agency said.

IIFCL’s rating could be upgraded if the agency raises the rating on the sovereign and the company continues to perform the same level of service to the government, the note added.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2018-12-26 21:52:22

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

Get real time updates directly on you device, subscribe now.

Comments
Loading...

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More