Fitch Affirms PFC And REC At ‘BBB-’/Stable Amid Merger Plan

Fitch Ratings has reaffirmed the long-term issuer default ratings of Power Finance Corporation (PFC) and REC Limited at ‘BBB-’ with a Stable outlook. The decision reflects their close credit linkage to the Indian sovereign and continued government backing, particularly in financing power and infrastructure projects.  

The affirmation coincides with the ongoing merger plan between PFC and REC, which is expected to consolidate resources and improve funding access for large-scale renewable energy and infrastructure projects. Analysts suggest that the merger will enhance underwriting capacity, debt refinancing options, and overall competitiveness in India’s energy financing landscape.  

Key highlights from the announcement include  

• Fitch affirms PFC and REC at ‘BBB-’/Stable  
• Ratings reflect strong government support and sovereign linkage  
• Merger plan aims to consolidate resources and expand financing capacity  
• Expected to ease funding access for renewable energy developers  
• Strengthens India’s infrastructure and power sector financing ecosystem  

Industry experts note that the merger will not only streamline operations but also provide greater resilience in financing complex projects. Fitch’s stable outlook underscores confidence in the companies’ strategic importance to India’s energy transition and infrastructure growth.  

Sources: Fitch Ratings, Business Standard, Economic Times