Hudco ratings affirmed by Fitch at 'BBB-' with stable outlook

Fitch Ratings has affirmed Housing and Urban Development Corporation Limited's (HUDCO) Long-Term Foreign- and Local-Currency Issuer Default Ratings at 'BBB-', with a Stable Outlook. The rating on HUDCO's INR50 billion medium-term note (MTN) program has also been affirmed at 'BBB-'. Fitch views HUDCO as a government-related entity (GRE) closely linked to the Indian sovereign, with ratings equalized to the sovereign’s based on the government's significant responsibility and incentive to provide support. HUDCO's role in affordable housing and urban infrastructure, its regulation by the Reserve Bank of India (RBI), and administrative control by the Ministry of Housing and Urban Affairs (MoHUA) underpin this assessment. Fitch's support score assessment for HUDCO is "Virtually Certain," with extraordinary support expected from the Indian government if needed. The agency also highlighted the government's 75% stake in HUDCO and substantial support to underpin HUDCO's asset quality.