ICRA reaffirms LAAA rating to PFC's long-term borrowing prog

New Delhi, Nov 6 (UNI) Credit rating agency ICRA has reaffirmed the LAAA rating to the outstanding long-term borrowing programmes of Power Finance Corporation (PFC), besides retaining the A1+ and MAAA rating to its Rs 35 crore short term debt/ CP and Fixed Deposit programme.

The highest credit quality ratings continue to reflect PFC's ownership and its role in implementation of various schemes of the government for the development of the power sector.

The rating also takes into account PFC's moderate gearing level and its comfortable liquidity position.

The agency has taken note of increasing sanctions to Independent Power Producers (IPPs). PFC's ability to maintain satisfactory collections from the IPPs would have an important bearing on its credit profile in future, ICRA said.

For the first quarter ended June 30, 2006, PFC reported a 42 per cent decrease in net profit at Rs 152 crore compared to Rs 262 crore during the corresponding quarter in the previous fiscal, on account of notional exchange losses and nil interest restructuring premium.

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