Fitch Affirms Stable Outlook for Key Indian Finance Giants

Fitch Ratings has maintained its stable outlook for three state-operated infrastructure financing companies: REC Limited, Power Finance Corporation Ltd, and Indian Railway Finance Corporation Limited. These entities are pivotal to the financial infrastructure that supports India's power and railway sectors.

For REC Ltd, Fitch highlighted its crucial role in executing power sector reforms, essential for India's economic growth. REC's financing capabilities ensure liquidity within the power sector, particularly aiding weaker distribution companies, limiting potential political crises.

Similarly, PFC is integral to power sector reforms through its strategic financing, preventing liquidity shortfalls in the sector. IRFC holds a significant position as a government-related entity, with a robust framework for state support, cementing its essential role in India's railway sector development.

(With inputs from agencies.)