Fitch: Hudco notes AA+(ind)

Fitch Ratings said it assigned a Fitch AA+(ind) rating to Housing and Urban Development Corp. Ltd.'s proposed Rs. 80 billion of domestic bond issuances, which are partly taxable and partly tax-free.

The agency also affirmed the company's long-term foreign-currency issuer default rating at BBB- with a negative outlook, national long-term rating at Fitch AA+(ind) with a stable outlook, short-term foreign-currency issuer default rating at F3, support rating at 2, support rating floor at BBB-, national short-term rating at Fitch A1+(ind), Rs. 150 billion domestic bonds at Fitch AA+(ind), Rs. 15 billion of short-term debt at Fitch A1+(ind) and Rs. 23.5 billion of domestic bonds issued under a letter of comfort from the government at Fitch AAA(ind)(SO).

The issuer default rating reflects Fitch's expectation of a high probability of continued timely support from the government of India (BBB-/negative) given Hudco's role in implementing the government's policies in urban infrastructure and low-cost housing and its strong operational links with the government, which owns 100% of Hudco's equity.

The negative outlook on the long-term foreign-currency issuer default rating reflects the sovereign outlook.

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