Fitch Ratings has assigned
The proposed notes will be issued from REC's existing
Key Rating Drivers
The proposed notes are rated in line with REC's Long-Term Issuer Default Rating (IDR) on the basis that they will be issued under REC's programme and will constitute its direct, unconditional and unsecured obligations and rank pari passu with all its other outstanding unsecured and unsubordinated obligations.
Derivation Summary
Fitch assess REC under its Government-Related Entities Rating Criteria, factoring in the company's strong linkage with the government and the government's incentive to provide support, with a high overall support score of 50. This results in the equalisation of REC's IDR with that of the Indian sovereign (BBB-/Stable), irrespective of the company's Standalone Credit Profile.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
A positive change to the company's IDR will result in a similar change to the proposed notes.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Negative rating action on the company's IDR will result in a similar change to the proposed notes.
ESG Considerations
Fitch does not assign ESG scores for REC as the ratings and ESG profile are derived from the parent. ESG relevance scores and commentary for the parent entity,
Issuer Profile
REC was established in 1969 and is a non-banking financial company registered with the
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