ICRA assigns LAAA rating to IRFC's Rs 46.70 bln LTD prog

New Delhi, May 4 (UNI) Credit rating agency ICRA today assigned LAAA rating to the Rs 46.70 billion long-term borrowing (LTD) programme of Indian Railway Finance Corporation Ltd (IRFC) for the financial year 2006-07, indicating highest credit quality and lowest credit risk.

The rating factors in IRFC's sovereign ownership and its important role as a sole arranger of lease finance for the Ministry of Railways (MoR).

The highest safety rating also takes into account the lease agreement between IRFC and MoR, which provides IRFC with a positive interest spread and protects it against liquidity, interest rate and currency risks.

IRFC also mobilises funds on behalf of Rail Vikas Nigam Ltd, a special purpose vehicle of the MoR, which undertakes the construction of new railway lines.

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