HUDCO credit ratings reaffirmed by CARE Ratings

CARE Ratings has reaffirmed HUDCO's credit ratings, indicating a stable outlook for the company's financial obligations. The reaffirmation includes a "CARE AAA; Stable" rating for long-term bank facilities of INR500,000,000,000 and various bond issuances dating back to FY11-12, including a planned INR400,000,000,000 bond issuance for FY24-25. The "CARE A1+" rating has been reaffirmed for HUDCO's commercial paper and short-term bank facilities. CARE Ratings highlighted HUDCO's strategic importance to the Government of India, strong parentage, improving asset quality, diversified resource profile, and healthy capitalization as key rating drivers. However, the concentrated loan book poses a potential risk. CARE Ratings expects that HUDCO will continue to be strategically important to the GoI and will continue to maintain its healthy profitability, capitalization and asset quality.