Fitch assigns BBB- to IREDA's issuer default ratings

Fitch Ratings today said it has assigned 'BBB-' to long-term foreign and local currency issuer default ratings on Indian Renewable Energy Development Agency with a stable outlook.

"Fitch Ratings has assigned Indian Renewable Energy Development Agency Ltd's (IREDA) long-term foreign and local currency Issuer Default Ratings (IDR) of 'BBB-' and short-term IDR of 'F3'. The outlook is stable," it said in a statement.

IREDA's ratings are equalised with those of the government. This reflects its strong strategic importance, given the government's control through 100 per cent stake and the fact that 52 per cent of the debt is guaranteed by the government, it added.

This means there is a strong likelihood of IREDA getting extraordinary state support, if needed. Therefore, Fitch classifies it as a credit-linked public entity. The stable outlook is in line with that on the sovereign.