Fitch Ratings has affirmed Power Grid Corporation of India (PGCIL) long-term issuer default rating (IDR) at 'BBB-'. The outlook is stable. At the same time, the agency has affirmed PGCIL's senior unsecured rating of 'BBB-' and the 'BBB-' ratings on its USD 500 million senior unsecured notes.

PGCIL's IDR is a notch below its standalone credit profile of 'BBB', constrained by the 'BBB-' IDR of its 57.9% owner, the state of India. Fitch assesses PGCIL's linkages with the Indian state to be moderate to strong. The legal linkages are moderate with the government of India guaranteeing 20% - 30% of the total debt.

The operational linkages are also moderate as the government provides operational support in issues related to right of way, forest clearances, land acquisitions, and collection of outstanding dues from state utilities. The strategic linkages are high as the company is the Central Transmission Utility, and is a key policy implementation tool in the electricity industry.

Shares of the company gained Rs 2.9, or 2.17%, to settle at Rs 136.45. The total volume of shares traded was 613,338 at the BSE (Thursday).