S&P revises outlook on 4 Indian GREs to stable

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The following statement was released by the ratings agency:

We revised the outlooks on four Indian GREs to stable from negative.

The outlook revision reflects a similar rating action on the sovereign credit ratings on India, in view of their integral links and critical roles to the government of India.

Standard & Poor's Ratings Services today revised the outlook on the long-term issuer credit ratings of Export-Import Bank of India (India EXIM), Power Finance Corp. Ltd (PFC), Indian Railway Finance Corp. (IRFC), and India Infrastructure Finance Co. Ltd. (IIFCL) to stable from negative. At the same time, Standard & Poor's affirmed the 'BBB-' long-term issuer credit ratings on the four entities.

The revised outlooks reflect the similar outlook revision on the sovereign credit ratings of the Republic of India (BBB-/Stable/A-3). The outlook revision takes into account the four government-related entities' (GREs) integral relationship with and the critical role to the sovereign, resulting in our view of almost certain likelihood of extraordinary government support.

Hence, the ratings are equalized with the sovereign credit ratings on India. The outlook revision on the sovereign reflects our views that India's fiscal position is on a recovery path and the economy's growth prospects remain strong (see article titled "India Outlook Revised To Stable From Negative On Our Expectation Of An Improvement In The Country's Fiscal Position," published March 18, 2010, on RatingsDirect.)