CRISIL has assigned its 'A+/Stable' rating to the Rs 2 billion non-convertible debenture issue of PTC India Financial Services (PFS) and its 'A1+' rating to the company's Rs 4 billion short-term debt programme.

The rating centrally factors in PFS's strategic importance to, and the support it can expect to receive from, its promoter, PTC India (PTC; rated 'A1+'). The rating also reflects PFS's comfortable capitalization and healthy earnings profile. These rating strengths are partially offset by PFS's exposure to risks relating to asset quality given the challenges faced by the power sector. The ratings also factor in PFS's moderate market share in the infrastructure financing segment.

CRISIL believes that PTC will maintain majority ownership in, and extend strong support to, PFS. Furthermore, PFS will maintain a comfortable financial risk profile over the medium term. The outlook may be revised to 'Positive' in case of a material improvement in PTC's credit risk profile or if there is sustained and significant improvement in its asset quality and competitive position, while it maintains a comfortable financial risk profile.

Conversely, the outlook may be revised to 'Negative' in case of substantial changes in PTC's ownership in, or support extended to, PFS or if PTC's credit risk profile weakens. The outlook may also be revised to 'Negative' if material deterioration in asset quality adversely impacts PFS's capitalization and earnings.

Shares of the company declined Rs 0.16, or 1.15%, to settle at Rs 13.70. The total volume of shares traded was 178,231 at the BSE (Tuesday).