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

Press Trust of India  |  New Delhi 

has assigned Baa3 rating to state-run Rural Electrification Corporation's proposed senior unsecured notes, issued under its USD 3 billion 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 (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 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 Companies rating methodology and Mood's assessment of the strong link between the REC and the (Baa2 Stable).

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 09 2018. 15:05 IST