HUDCO ratings affirmed at 'IND AAA'/Stable by India Ratings

India Ratings & Research has affirmed HUDCO's issuer rating at 'IND AAA'/Stable, citing the company's continued systemic importance to the Government of India for housing and urban infrastructure development. The rating agency also affirmed HUDCO's commercial paper at 'IND A1+'. Key factors supporting the rating include sustained government policy support, funding of the public sector, and adequate capitalization. As of 9MFY25, HUDCO disbursed INR13.32 billion in the affordable housing sector and INR304.28 billion in the urban infrastructure sector. While HUDCO's gross NPA and net NPA ratios improved to 1.88% and 0.27% respectively in 9MFY25, Ind-Ra anticipates a degree of loan book concentration due to HUDCO's lending to the top 20 borrowers, accounting for 80.22% of its outstanding loan book. Additionally, INR650 billion worth of proposed bonds also have a sub-limit of INR65 billion for subordinate debt. The ratings factor in HUDCO's role in financing government housing and urban projects, and the agency expects HUDCO's linkage with the Gol to remain strong.