Fitch Ratings affirmed Rural Electrification Corporation (REC) long-term foreign- and local-currency issuer default ratings (IDRs) at 'BBB-'. The outlook is stable.

REC's ratings are equalised with those of the sovereign (BBB-/Stable). This reflects its public sector status, the government of India's ownership, and strong operational and strategic ties with the government that result in a strong likelihood of extraordinary government support if needed. REC is therefore classified as a dependent public sector entity under Fitch's criteria.

REC is one of two public financial institutions that provide funds exclusively to the Indian power sector and is also the second largest lender to the sector. The government has appointed REC as the sole central agency in implementing two nationwide power reform projects aimed at increasing electricity coverage in rural areas and subsidising electricity distribution projects.

Shares of the company gained Rs 15.5, or 4.39%, to trade at Rs 368.30. The total volume of shares traded was 483,720 at the BSE (12.37 p.m., Monday).