Fitch Ratings has affirmed India-based Power Finance Corporation's (PFC) long-term issuer default rating (IDR) at 'BBB-'. The outlook is dtable. Fitch has also affirmed PFC's senior unsecured rating and USD 1 billion senior unsecured medium-term note programme at 'BBB-'.

PFC's ratings are equalised with those of India (BBB-/Stable). This reflects the entity's public sector status, government ownership, and strong operational and strategic ties with the government. PFC is, therefore, classified as a dependent public sector entity under Fitch Ratings' criteria. The ratings also reflect PFC's healthy financial performance and low delinquency ratio.

PFC is one of two public financial institutions that provide funds exclusively to the Indian power sector and is also the largest lender to the sector. The government of India has also appointed PFC as the sole central agency implementing several nationwide power reform projects aimed at reducing the state power utilities' technical and commercial losses and improving their operational efficiency.

Shares of the company gained Rs 15.55, or 4.79%, to settle at Rs 340. The total volume of shares traded was 551,224 at the BSE (Monday).