Fitch Assigns First-Time ‘BBB-’ Rating to NaBFID, Cites Strong Sovereign Linkage and Stable Outlook

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Fitch Ratings has assigned a first-time Long-Term Foreign- and Local-Currency Issuer Default Rating (IDR) of ‘BBB-’ with a Stable Outlook to the National Bank for Financing Infrastructure and Development (NaBFID). The rating reflects NaBFID’s strategic importance to India’s infrastructure development and its strong credit linkage to the sovereign.

Key Highlights:

Fitch classifies NaBFID as a government-related entity (GRE), credit-linked to the Indian sovereign (BBB-/Stable).
The rating is supported by NaBFID’s policy-driven mission to finance infrastructure projects across sectors like energy, roads, ports, and urban development.
The government’s incentive to support NaBFID is deemed “very strong,” with a support score of 55 out of 60 under Fitch’s GRE criteria.

Operational Context:

NaBFID is fully owned by the Government of India and operates under the administrative control of the Ministry of Finance.
The bank benefits from sovereign guarantees on multilateral loans and concessional borrowing terms.
As of FY25, NaBFID’s capital adequacy ratio stood well above regulatory norms, with improved asset quality and declining impaired loans.

Strategic Outlook:

Fitch expects NaBFID to maintain prudent financial policies and continue playing a pivotal role in India’s infrastructure financing ecosystem.
The Stable Outlook reflects confidence in NaBFID’s governance, oversight, and operational resilience amid evolving market conditions.

Source: Fitch Ratings (May 22, 2025)