Fitch Ratings has assigned Indian Railway Finance Corporation's (IRFC) USD 500 million 3.917% senior unsecured notes due 2019 a final rating of 'BBB-'. The rating is aligned with IRFC's long-term issuer Default Rating (IDR) of 'BBB-', which has a stable outlook.

The assignment of the final rating follows the receipt of documents conforming to information already received. The final rating is in line with the expected rating assigned on Jan. 13, 2014.

IRFC's ratings reflect the entity's public sector status, government ownership and strong operational and strategic ties with the government of India, resulting in a strong likelihood of extraordinary government support if needed. As such, IRFC has been classified as a dependent public sector entity under Fitch's criteria and the ratings are credit linked to that of the sovereign.

The ratings derive strength from the ministry of railways' ongoing support as evidenced by regular equity injections into IRFC since its formation. IRFC's debt/equity ratio has been largely inside the 10x limit in the past three years.

Fitch expects further capital injections from the ministry of railways if this ratio were to exceed the limit. The ministry injected Rs 7.5 billion and Rs 6 billion in FY12 and FY13, respectively.