Fitch revises HUDCO's outlook to negative from stable; IDRs at 'BBB-'

Credit rating agency Fitch has revised the outlook on state-owned Housing and Urban Development Corporation Ltd (HUDCO) to negative from stable.

The long-term Issuer Default Ratings (IDRs) have been affirmed at 'BBB-'.

"The rating action follows the revision in the outlook on India's 'BBB-' sovereign rating to negative from stable on June 18, 2020, as HUDCO's rating is credit-linked to that of India," Fitch Ratings said in a statement.

HUDCO is a policy institution that provides housing finance and non-commercial urban infrastructure financing. It is regulated by the National Housing Bank (NHB) and is under the administrative control of the Ministry of Housing and Urban Affairs.

The company's key mission is to support the construction of affordable housing for lower-income households and the development of non-commercial urban infrastructure.

Fitch said it has not assigned HUDCO a standalone credit profile as it is difficult to detach the entity from the government framework in which it operates.