Moody's assigns Baa3 rating to REC's $3 bn notes

Moody's Investors Service has assigned Baa3 rating to state-run Rural Electrification Corporation's proposed senior unsecured notes, issued under its USD 3 billion medium term note program.
The credit rating assigned is the lowest in the investment grade indicating moderate risk.
The bonds will have a maturity of ten years and will be listed on the Singapore Exchange Securities Trading Limited (SGX-ST) and the International Securities Market (ISM) of the London Stock Exchange, Mood's statement said adding that the rating outlook is stable.
The standalone strength of REC is supported by its operating track record and its status as the preferred lender to state-run power utilities, its captive franchise in the financing of rural electrification projects, as well as power transmission, distribution and generation, Moody's said.

It also said that REC Baa3 foreign-currency issuer rating takes into consideration its Baseline Credit Assessment (BCA) of ba3 under its Finance Companies rating methodology and Mood's assessment of the strong link between the REC and the Government of India (Baa2 Stable).